/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060817.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, August 17, 2006, Vol. 7, Issue 163 Headlines A R G E N T I N A BANCO RIO: Issues Fideicomiso Financiero for ARS110 Million COIM SRL: Last Day for Verification of Claims Is on Aug. 29 DROGUERIA DALETH: Enters Bankruptcy Protection on Court Orders ECOBOLSA SA: Trustee Verifies Creditors' Claims Until Oct. 23 EMPLATOR SRL: Verification of Proofs of Claim Is Until Sept. 26 SALAFE SRL: Claims Verification Deadline Is Set for Sept. 27 SANCOR COOP: Comision Nacional Rates US$394-Mil. Debts at raCCC SUCESION DE GUMERSINDO: Seeks for Court OK to Restructure Debts TRANSENER: S&P Says B- Ratings Show Weak Debt Coverage Ratios YPF SA: S&P Outlines Factors That Support Low B Ratings * ARGENTINA: Speeding Up Talks on Planned Pipeline with Bolivia B A H A M A S PINNACLE ENT: Accepts Early Tenders for President Casinos' Notes B O L I V I A INTERNATIONAL PAPER: Commences US$1.5-Bil Share Repurchase Prog. PRIDE INT'L: Fitch Upgrades Issuer Default Rating to BB from BB- * BOLIVIA: Speeding Up Talks on Planned Pipeline with Argentina * BOLIVIA: Trade Institute Reports Lower Exports to Venezuela B R A Z I L AGCO CORP: Moody's Affirms Ba2 Corporate Family Rating AMERICAN AXLE: S&P Rates US$50MM Sr. Unsecured Term Loan at BB BANCO PANAMERICANO: Moody's Assigns B2 Rating on US$75MM Notes BANCO NACIONAL: Approves BRL117.3-Mil. Financing to Coelba BANCO NACIONAL: Grants BRL114.7-Mil. Financing to Marisa Lojas PETROLEO BRASILEIRO: Unit Acquires Stake in Cascade & Chinook * BRAZIL: Will Discuss Itaipu Dam Debt Payment with Paraguay C A Y M A N I S L A N D S ARGENT NIM 2003-N6: Final Shareholders Meeting Is on Sept. 7 ARGENT NIM 2003-N8: Last Shareholders Meeting Is Set for Sept. 7 ARGENT NIM 2004-WN4: Final Shareholders Meeting Is on Sept. 7 CHARLOTTE LIMITED: To Hold Final Shareholders Meeting on Sept. 7 CITRIX CAYMAN: Holding Final Shareholders Meeting on Sept. 7 EQUITY LCI: Deadline for Proofs of Claim Filing Is on Sept. 8 EQUITY MIA: Creditors Have Until Sept. 8 to File Proofs of Claim INVESTCORP (INVESTING): Proofs of Claim Filing Is Until Sept. 8 INVESTCORP (ISLAMIC): Proofs of Claim Must be Filed by Sept. 8 MINIMAX EQUITY: Deadline for Proofs of Claim Filing Is Sept. 8 MINIMAX FUNDING: Last Day to File Proofs of Claim Is on Sept. 8 MINIMAX IIP: Creditors Must Submit Proofs of Claim by Sept. 8 SF BONDS: Yukio Taniguchi Named as New Trustee for Proceeding SF BONDS: Shareholders Gather for a Final Meeting on Sept. 7 ZEST INVESTMENT: Holding Final Shareholders Meeting on Sept. 7 C O L O M B I A CA INC: Commences US$1 Billion Tender Offer on Outstanding Stock ECOPETROL: Petrobras Vying for Majority Stake in Cartagena Plant PETROLEO BRASILEIRO: Vying for Majority Stake in Ecopetrol Plant * COLOMBIA: Resumes Third Round of Free Trade Treaty Talks C O S T A R I C A DENNY'S CORP: Reports Same-Store Sales for July * COSTA RICA: Government Will Tax Financial Services C U B A * CUBA: Bolivian Trade Institute Notes Zero Export to Venezuela D O M I N I C A N R E P U B L I C FALCONBRIDGE LTD: Xstrata Acquires 67.8% of the Company's Shares TAG-IT PACIFIC: Posts US$665,000 Second Quarter 2006 Net Income E L S A L V A D O R * EL SALVADOR: Joins Third Round of Free Trade Treaty Talks G U A T E M A L A * GUATEMALA: Participates in Third Round of Free Trade Talks G U Y A N A DIGICEL LTD: To Enter Guyana Telecommunications Market H A I T I * HAITI: Stabilization Mission Extended Six Months H O N D U R A S WARNACO GROUP: Restating 2005 Reports Due to Accounting Errors WARNACO: Net Revenues Up 20.5% to US$451.6M in Second Quarter * HONDURAS: Introducing Organic Banana Planting in Olancho * HONDURAS: Joins Third Round of Free Trade Talks J A M A I C A DELTA AIR: Posts US$2.2 Billion Net Loss in Second Quarter 2006 M E X I C O GRUPO GIGANTE: S&P Says BB Ratings Reflect High Debt Leverage GRUPO MEXICO: New Projects May Raise Output by 60% in Four Years MERIDIAN AUTOMOTIVE: To File a Revised Plan of Reorganization SONIC CORP: Launches US$560 Million "Dutch Auction" Tender Offer N I C A R A G U A * NICARAGUA: Hydroelectric Projects Portfolio Attracts 10 Firms P A N A M A BANCO LATINAMERICANO: Posts US$8.9MM Second Quarter Net Income * PANAMA: OKs Framework Agreement of Cooperation with Venezuela P A R A G U A Y * PARAGUAY: Will Discuss Itaipu Dam Debt Payment with Brazil P E R U DEL MONTE: Unit Replaces US$100M of Credit with New Term B Loan * PERU: Rail Concessionaire to Propose Linking Nation to Brazil P U E R T O R I C O DORAL FINANCIAL: Files Fin. Reports for Year Ended Dec. 31, 2005 T R I N I D A D & T O B A G O BRITISH WEST: Implements New Flight Regulation U R U G U A Y * URUGUAY: Political Coalition Rejects Free Trade Pact with US V E N E Z U E L A CITGO PETROLEUM: Sells Texas Refinery to Lyondell for US$1.3B * VENEZUELA: Bolivian Exports Down 3% to US$90M for First Half * VENEZUELA: Oil Output Declines 120,000 Barrels Per Day in July * VENEZUELA: Pres. Chavez to Reinforce Bilateral Ties with China * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= BANCO RIO: Issues Fideicomiso Financiero for ARS110 Million ----------------------------------------------------------- Banco Rio de la Plata has issued Fideicomiso Financiero for ARS110 million. The issuance is the second of a program which totals almost ARS200 million, according to Infobae. The titles of the Fideicomiso will pay interest per month at 2.25% plus CER, a minimum rate of 6% and a maximum of 25%. The subscription period expired yesterday. The titles will be issued in two stages: -- the Serie A of Titles of debt with variable rate and due on December 3, 2022, for a total of ARS93.5 million, and -- the Serie B of Certificados de Participacion and due on December 3, 2022, for ARS16.5 million. Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata is an Argentinean private bank providing a range of financial services, including retail, corporate, and merchant banking, insurance, credit cards and fund management, to individuals, companies of all sizes, financial institutions and the public sector (both provincial and national). The company has a network of approximately 280 branches and employs over 5,000 serving over 1 million customers. It is part of the Latin American franchise of Banco Santander Central Hispano, which holds over 80% of the bank's share capital. * * * Moody's Investor Service assigns Caa1 ratings to Banco Rio de la Plata's Issuer Rating and Long-Term Bank Deposits. * * * As reported in the Troubled Company Reporter on May 17, 2006, Fitch Ratings affirmed these ratings of Banco Rio de la Plata: -- Individual 'E'; and -- Support '5'. COIM SRL: Last Day for Verification of Claims Is on Aug. 29 ----------------------------------------------------------- Mabel Herrera, the court-appointed trustee for Coim S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 29, 2006. Ms. Herrera will present the validated claims in court as individual reports on Oct. 16, 2006. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Coim and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Coim's accounting and banking records will follow on Nov. 29, 2006. Ms. Herrera is also in charge of administering Coim's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Coim S.R.L. Junin 558 Buenos Aires, Argentina The trustee can be reached at: Mabel Herrera Rodriguez Pena 694 Buenos Aires, Argentina DROGUERIA DALETH: Enters Bankruptcy Protection on Court Orders -------------------------------------------------------------- Drogueria Daleth S.R.L. enters bankruptcy protection after Court No. 23 in Buenos Aires ordered the company's liquidation. The order transfers control of the company's assets to a court- appointed trustee who will supervise the liquidation proceedings. The name of the trustee has not been disclosed. Under Argentine Bankruptcy law, the trustee will: -- verify creditors' proofs of claim; -- prepare and present individual and general reports in court after the claims are verified; and -- administer Drogueria Daleth's assets under court supervision and take part in their disposal to the extent established by law. After the verification of claims, Court No. 23 will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Drogueria Daleth and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Clerk No. 45 assists the court in the proceeding. The debtor can be reached at: Drogueria Daleth S.R.L. Avenida Nazca 1126 Buenos Aires, Argentina ECOBOLSA SA: Trustee Verifies Creditors' Claims Until Oct. 23 ------------------------------------------------------------- Court-appointed trustee Marta Polistino verifies creditors proofs of claim against bankrupt company Ecobol S.A. until Oct. 23, 2006. Under Argentina bankruptcy law, Ms. Polistino is required to present the validated claims in court as individual reports. Court No. 5 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Ecobol and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Polistino will also submit a general report that contains an audit of Ecobol's accounting and banking records. The report submission dates have not been disclosed. Court No. 5 declared the company bankrupt at the behest of Juan Bautista Frias, whom it owes US$37,904.55. Clerk No. 10 assists the court in the proceeding. The debtor can be reached at: Ecobol S.A. Loyola 549 Buenos Aires, Argentina The trustee can be reached at: Marta Polistino Cramer 2175 Buenos Aires, Argentina EMPLATOR SRL: Verification of Proofs of Claim Is Until Sept. 26 --------------------------------------------------------------- Court-appointed trustee Maria del Carmen Amandule verifies creditors' proofs of claim against bankrupt company Emplator S.R.L., formerly known as Jovias S.R.L., until Sept. 26, 2006. Under Argentina bankruptcy law, Ms. Amandule is required to present the validated claims in court as individual reports. Court No. 8 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Emplator and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Amandule will also submit a general report that contains an audit of Emplator's accounting and banking records. The report submission dates have not been disclosed. Court No. 8 declared the company bankrupt at the request of Banca Nazionale del Lavoro S.A. Clerk No. 16 assists the court in the proceeding. The debtor can be reached at: Emplator S.R.L. Avenida Cordoba 1532 Buenos Aires, Argentina The trustee can be reached at: Maria del Carmen Amandule Urquiza 1133 Buenos Aires, Argentina SALAFE SRL: Claims Verification Deadline Is Set for Sept. 27 ------------------------------------------------------------ Luis Alberto Cortes, the court-appointed trustee for Salafe S.R.L.'s bankruptcy proceeding, will verify creditors' proofs of claim until Sept. 27, 2006. Under Argentina bankruptcy law, Mr. Cortes is required to present the validated claims in court as individual reports. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Salafe and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Cortes will also submit a general report that contains an audit of Salafe's accounting and banking records. The report submission dates have not been disclosed. The trustee can be reached at: Luis Alberto Cortes Avenida Cordoba 1546 Buenos Aires, Argentina SANCOR COOP: Comision Nacional Rates US$394-Mil. Debts at raCCC --------------------------------------------------------------- The Comision Nacional Valores assigned raCCC ratings on Sancor Coop. Unidas Ltda.'s debts: -- Serie 3 for US$75,800,000 included under the US$300 million program * last due: Jan. 27, 2004 -- Program of Obligaciones Negociables for US$300 million * last due: April 23, 2006 -- Serie 2, for US$19,000,000, included under the US$300 million program * last due: Jan. 27, 2004 The rating action was based on Sancor Coop.'s financial status at Mar. 31, 2006. SUCESION DE GUMERSINDO: Seeks for Court OK to Restructure Debts --------------------------------------------------------------- Court No. 4 in Buenos Aires is studying the merits of Sucesion de Gumersindo Fernandez y Elsa Josefa Bernardini's petition to reorganize its business after a cessation of payments on Oct. 31, 2003. The petition, once approved by the court, will allow the Sucesion de Gumersindo to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 7 assists the court in this case. The debtor can be reached at: Sucesion de Gumersindo Fernandez y Elsa Josefa Bernardini Rosario 360 Buenos Aires, Argentina TRANSENER: S&P Says B- Ratings Show Weak Debt Coverage Ratios ------------------------------------------------------------- The 'B-' ratings on Compania de Transporte de Energia Electrica en Alta Tension Transener S.A. aka Transener, Argentina's largest power transmission company, mainly reflect the high political and regulatory risk in Argentina and the company's weak debt service coverage ratios, high foreign exchange risk, and limited financial flexibility. In contrast, the ratings benefit from Transener's strong competitive position and efficient operations. In December 2005, the Argentine government approved an agreement between Transener and the Unidad de Renegociacion y Analisis de Contratos de Servicios Publicos, an entity that the government created to renegotiate the concessions for public service companies. The agreement awarded Transener a sizable tariff increase that should result in better debt service coverage ratios as of fiscal 2006. The agreement incorporated a 31% tariff increase at Transener and a 25% increase at its subsidiary Transba S.A. retroactive to June 2005, and also included a tariff-adjustment mechanism, mandatory investments, and service-quality targets for a transition period originally ending May 2006, when the concession contract should have been fully renegotiated. There has been no significant progress on the last point, so the date and final conditions of a full renegotiation remain unclear. Transener's long-term credit quality depends on the final terms and conditions of the renegotiated concession contracts. On June 30, 2005, Transener's financial performance improved with the completed restructuring of its approximately US$570 million defaulted debt. The restructuring reduced total debt by around 50% to about US$285 million and smoothed the company's maturity profile to manageable levels under relatively stable macroeconomic conditions. The lower levels, combined with the higher cash flow generation deriving from the recent tariff increase, should improve Transener's total debt to EBITDA to around 4x in the 2006-2007 period from about 5x in 2005. Transener is expected to generate between US$60 million and US$70 million in EBITDA in 2006 and 2007, which should allow the company to: -- pay interest of about US$20 million, -- carry out about US$10 million in capital spending, -- pay debt maturities of between US$7 million and US$10 million, and -- prepay some additional debt in accordance with cash-sweep clauses included in the new debt's terms and conditions. Funds from operations interest coverage and FFO to total debt ratios are expected to range between 2.5x and 3.5x and 10% to 15%, respectively. However, the high foreign-exchange risk resulting from its mostly Argentine-peso-denominated revenues and U.S.-dollar-denominated debt still represents a significant challenge. Transener has a 95-year concession contract, awarded in 1993, to operate and maintain most of the high-tension transmission lines in Argentina, and was also awarded the operation and maintenance of the 1,300-kilometer high-tension transmission line built by the company between the Comahue region and Buenos Aires for 15 years as of 1999. Transener is controlled by Citelec S.A., which is in turn controlled equally by Dolphin Fund Management and Petrobras Energia S.A. (B/Stable/--), which recently sold its stake to Eton Park Capital Management (not rated), although the transaction is waiting for regulatory approval. Liquidity Transener's liquidity is weak in spite of its adequate cash reserves of about US$13 million as of June 30, 2006, given its US$12.5 million short-term debt. The company benefits from a smooth debt maturity profile and relatively low capital expenditures. This is mainly because of its financial flexibility, which remains constrained by restrictions imposed in the new debt's terms and conditions--which include mandatory prepayment clauses in case the company generates excess cash-- and by its weak business risk profile. Outlook The stable outlook reflects Standard & Poor's Ratings Services' expectations that Transener will be able to meet its financial obligations during the 2006-2008 period without significant changes in inflation and the exchange rate because of the projected relatively stable macroeconomic scenario. Rating upside is limited by political and regulatory risks in Argentina. However, the ratings could be lowered if Transener is affected by a sizable devaluation of the Argentine peso, high inflation, or further government intervention that could significantly alter its financial performance or business fundamentals. YPF SA: S&P Outlines Factors That Support Low B Ratings ------------------------------------------------------- Y.P.F. S.A. currently holds these ratings by Standard & Poor's: -- long-term foreign issuer credit rating; BB; and -- long-term local issuer credit rating: BB+. Standard & Poor's Ratings Services' ratings on YPF S.A. reflect: -- its still-high strategic importance to its parent, Repsol-YPF S.A. (BBB/Stable/A-2); -- Repsol's economic incentive to strongly support its Argentine operation; -- a conservative financial profile (despite large dividend payments in the past four years, as free cash-flows were sustained at very healthy levels); and -- its adequate business position. The ratings also reflect the challenges of operating in the highly uncertain and rapidly changing Argentine economic environment, some vulnerability to highly volatile international prices, a geographically concentrated reserve base, and low reserve replacement ratios. The strong performance and relatively high importance of YPF's operations for Repsol's consolidated operations are significant incentives for Repsol's support. This is because, as YPF has been reducing its leverage to a more conservative level and exhibiting a very smooth maturity profile, any eventual required assistance should not be significant compared with YPF's equity value for Repsol. As a consequence, we consider the economic incentives for Repsol to support its Argentine subsidiary to be very strong, except in the case of total nationalization. Nevertheless, given the reduction in the reserve base, declining liquid production levels, and impaired natural-gas field performance given increasing production (sold at very low prices since 2002), the challenges of balancing the local production decline with continuing to generate healthy free cash flow might reduce the importance for the group and the eventual support in the long term. Standard & Poor's considers the regulatory and institutional environment in Argentina to be a major risk for YPF's business position. The hydrocarbon sector in Argentina is conditioned by political decisions that might affect the sustainability of the industry's profitability in the medium to long term. Since 2004, the Kirchner Administration has done the following: -- Modified many regulations jeopardizing the credit quality of the companies; -- Curtailed natural gas exports to Chile; -- Created a new state-owned energy company Enarsa that will operate in the hydrocarbon industry and increase uncertainties about the government's willingness to interfere in the sector; -- Pressured producers to invest in infrastructure projects (mostly pipelines); and -- Pressured producers and refiners not to increase the price of retail refined products. The unexpected downward revision of YPF's proven reserves by 509 million barrels of oil equivalent, coupled with YPF's inability to fully replace production in the past several years and the sale of its operations outside Argentina, has resulted in a decline of reserves of approximately 47% since year-end 2000. Total proved reserves as of Dec. 31, 2005, were 1,611 million boe (48% crude, almost all in Argentina, 73% developed). The proven reserve life for both natural gas and crude oil barely exceeds six years, which is considered low and might create pressure for additional capital expenditures to both sustain production and find additional reserves. YPF's revenue base, profitability, and cash-flow generation ability are volatile, influenced by the strong weight of the exploration and production division, which has contributed between 74% and 99% of operating income in the past four years. Despite government intervention that prevented the company from fully benefiting from international crude oil prices, YPF reported exceptional cash-flow protection measures given its very low indebtedness levels and still-strong cash generation. Funds from operations covered 622% of total debt in the 12 months ended June 30, 2006, while EBITDA interest coverage reached a strong 33.5x for the same period. Future performance will be conditioned by the effect of international events on prices and by the evolution of devaluation and inflation and new economic measures in Argentina. In the short to medium term, and despite the volatile environment in Argentina, YPF's financial performance, profitability measures, and cash-flow generation ability (with expected free cash flow exceeding many times total debt) should remain strong due to its adequate operating performance and very conservative financial profile in spite of an aggressive dividend policy in the past four years. Total debt represented 5.9% of total capitalization as of June 30, 2006. Liquidity Standard & Poor's considers YPF's liquidity position to be strong due to its important cash holdings and healthy cash-flow generation in the short to medium term. As of June 30, 2006, YPF's cash reserves amounted to US$210 million, with total debt at US$466 million, including US$114 million in the short term. Intercompany credits granted to the Repsol-YPF group (approximately US$1 billion as of June 2006) constitute an additional liquidity source. Given that no acquisition is expected and considering the company's strong cash-flow generation ability, Standard & Poor's expects YPF's capital expenditure needs to be covered by internally generated funds, and free operating cash flows to remain positive in the medium term. The rating agency expects increased capital expenditures in the next years. YPF showed an aggressive dividend policy in the past four years, resulting in an average payout ratio close to 100%. Nevertheless, this cash outflow has not affected YPF's credit quality, although these dividend payments might become politically sensitive in the future. Standard & Poor's expects YPF's dividend policy to reflect the Repsol Group's cash management policy but not to increase the company's cash needs or jeopardize its ability to fund capital expenditure requirements. Standard & Poor's expects YPF's liquidity situation to remain strong. Nevertheless, should foreign-exchange transfer controls be reinstated (as in the December 2001-May 2003 period), debt payment capacity could be pressured. Outlook The stable outlook on the foreign currency ratings reflects Standard & Poor's expectations that Repsol has sufficient economic incentives to support YPF, thereby mitigating direct sovereign risk, particularly an increase in current transfer and convertibility restrictions (Standard & Poor's currently sees Argentine transfer and convertibility risk as 'BB-' versus the sovereign foreign-currency rating of 'B'). The negative outlook on the local currency ratings reflects our perception of challenging field performance and reserve base maintenance in the context of the uncertain Argentine business environment. The stabilization or lowering of the local currency ratings depends on whether concerns about the upstream business persist or are allayed during the next 12-18 months. * ARGENTINA: Speeding Up Talks on Planned Pipeline with Bolivia --------------------------------------------------------------- Argentina will step up talks with Bolivia on a proposed pipeline project linking the two countries, Dow Jones Newswires. Dow Jones relates that the pipeline, known as the Northeast Argentina Gas Pipeline or GNEA, would allow Bolivia to sell Argentina an additional 20 million cubic meters of natural gas per day, which is two and a half times the amount it currently ships to Argentina on a daily basis. Bolivia's Vice President Alvaro Garcia Linera and Julio de Vido, the planning minister of Argentina, disclosed to the press on Monday that their countries would sign an accord by October and award a contract for the GNEA's construction before the end of 2006. Dow Jones notes that demand for Bolivian gas in Argentina has exceeded the capacity of the two nation's existing pipeline, which was constructed over 30 years ago. According to the report, the current Argentine-Bolivian pipeline can carry up to 7.7 million cubic meters of oil per day. Dow Jones underscores that Techint, a company in Argentina, has shown interest in making a bid for the GNEA project, which was expected to cost US$1 billion. GNEA's construction will start after the state energy firms of Bolivia and Argentina can decide on a price of the gas the pipeline will carry, Dow Jones says. GNEA would provide a key link between Bolivia's extensive natural gas reserves and the expanding South American energy market. Uruguay and Paraguay have expressed interest in buying a share of the gas pumped through GNEA, Dow Jones says. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B A H A M A S ============= PINNACLE ENT: Accepts Early Tenders for President Casinos' Notes ---------------------------------------------------------------- Pinnacle Entertainment, Inc., disclosed the satisfaction of the conditions for an Early Tender Date more particularly described in its Offer to Purchase dated July 19, 2006, pursuant to which the company offered to purchase any and all of the outstanding 12% Notes due 2001 (Cusip No. 740822AA9) and 13% Senior Exchange Notes due 2001 (Cusip No. 740848AF3) issued by President Casinos, Inc. Pinnacle Entertainment has accepted and purchased all Notes validly tendered prior to or on August 14, 2006, the Early Tender Date. As of August 14, 2006, approximately US$73.2 million, or about 97.6%, of the outstanding original principal amount of the Notes has been tendered. Holders of the Notes who tendered on or prior to the Early Tender Date will be paid an aggregate of approximately US$59.2 million, representing US$809.07 per US$1,000.00 of original principal amount of the Notes. The company's Offer to Purchase expired yesterday at 8:00 a.m., New York City time. Subject to the satisfaction of the remaining tender offer conditions, the company accepted and purchased any Notes validly tendered on or prior to the expiration date. As reported in the Troubled Company Reporter on July 24, 2006, holders who validly tendered their Notes, either prior to the Expiration Date or prior to the Early Tender Date, will receive the purchase price of US$809.07 per US$1,000 of original principal amount of the Notes. The aggregate original principal amount of the Notes that are currently outstanding is approximately US$75 million. Due to previous distributions in the bankruptcy proceedings of President Casinos, Inc. and its affiliates, the actual claims associated with the Notes are less than the original principal amount of the outstanding Notes. The claims associated with the Notes are believed to be no greater than the Purchase Price being offered by the company in the Tender Offer. The aggregate Purchase Price under this Tender Offer, assuming that the Tender Offer is fully subscribed, is US$60.7 million. Payment for the Notes will be made promptly after the Early Tender Date or the Expiration Date. HSBC Bank USA, National Association, is the depositary agent in connection with the Tender Offer. D.F. King & Co., Inc. is the information agent for the Tender Offer. Requests for copies of the Offer to Purchase and Letter of Transmittal should be directed to the information agent at (800) 967-7635. About President Casinos Headquartered in St. Louis, Missouri, President Casinos Inc. -- http://www.presidentcasino.com/-- currently owns and operates a dockside gaming casino in St. Louis, Missouri through its wholly owned subsidiary, President Missouri. The Debtor filed for chapter 11 protection on June 20, 2002 (Bankr. S.D. Miss. Case No. 02-53055). On July 11, 2002, substantially all of Debtor's other operating subsidiaries filed for chapter 11 protection in the same Court. The Honorable Judge Edward Gaines ordered the transfer of President Casino's chapter 11 cases from Mississippi to Missouri. The case was reopened on Nov. 5, 2002 (Bankr. E.D. Mo. Case No. 02-53005). Brian Wade Hockett, Esq., at Hockett Thompson Coburn LLP, represents the Debtors in their restructuring efforts. David A. Warfield, Esq., at Blackwell Sanders Peper Martin LLP, represents the Official Committee of Unsecured Creditors. The Company's balance sheet at Nov. 30, 2005 showed assets totaling US$66,292,000 and debts totaling US$75,531,000. About Pinnacle Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc. (NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates casinos in Nevada, Louisiana, Indiana and Argentina, owns a hotel in Missouri, receives lease income from two card club casinos in the Los Angeles metropolitan area, has been licensed to operate a small casino in the Bahamas, and owns a casino site and has significant insurance claims related to a hurricane- damaged casino previously operated in Biloxi, Mississippi. Pinnacle opened a major casino resort in Lake Charles, Louisiana in May 2005 and a new replacement casino in Neuquen, Argentina in July 2005. * * * As reported in the Troubled Company Reporter on May 24, 2006, Standard & Poor's Ratings Services revised its CreditWatch implications on Las Vegas-based casino owner and operator Pinnacle Entertainment Inc. to positive from negative. As reported in the Troubled Company Reporter on March 20, 2006, Moody's Investors Service placed the ratings of Pinnacle Entertainment, Inc. on review for possible upgrade. Pinnacle ratings affected include its B2 corporate family rating, B1 senior secured bank loan rating, and Caa1 senior subordinated debt rating. As reported in the Troubled Company Reporter on Mar. 15, 2006, Fitch Ratings placed the ratings of Pinnacle Entertainment on Rating Watch Negative. The ratings affected include 'B' issuer default rating; 'BB/RR1' senior secured credit facility rating; and 'CCC+/RR6' senior subordinated note rating. ============= B O L I V I A ============= INTERNATIONAL PAPER: Commences US$1.5-Bil Share Repurchase Prog. ---------------------------------------------------------------- International Paper Company is commencing a tender offer to purchase up to approximately 41.7 million shares, or approximately 8.4% of its currently outstanding shares. Under the modified "Dutch Auction" tender offer, the company will repurchase up to US$1.5 billion of its common stock at a price that is not less than US$32.50 and not greater than US$36 per share. The tender offer is scheduled to be completed on Sept. 13, 2006. On July 13, International Paper's board of directors authorized a share repurchase program to acquire up to US$3 billion of the company's stock through the end of 2007 as part of the company's transformation plan, launched in 2005. "When we announced our transformation strategy last year, we committed to a balanced and disciplined use of proceeds from divestitures, including returning value to shareowners. We believe this share repurchase, combined with strengthening our balance sheet and strategic reinvestment in our global platform businesses, will generate the best performance for International Paper and provide the strongest returns to its shareowners," said John Faraci, chairman and chief executive officer. Tender Offer The modified "Dutch Auction" tender offer for shares of the company's common stock will expire on Sept. 13, 2006, at midnight, New York City time, unless extended by the company. Under the terms of the tender offer, the company is offering to purchase for cash up to 41,666,667 shares of its common stock at a purchase price not greater than US$36 or less than US$32.50 per share. The offer is not conditioned on any minimum number of shares being tendered. The offer is, however, subject to certain other conditions described in the offer to purchase and related documents. Shareowners can choose to tender their shares, specifying a target share price, within the designated range, at which they would sell. After the tender offer expires, the company will examine the prices chosen by shareowners and then select the lowest price per share within the specified price range that will allow the company to purchase 41,666,667 shares or, if a lesser number of shares are properly tendered, all shares that are properly tendered. If shareowners tender more than 41,666,667 shares at or below the determined purchase price per share, the company will purchase those shares at the determined price per share, on a pro rata basis, based upon the number of shares each shareowner tenders, subject to certain exceptions. Shareowners whose shares are purchased in the tender offer will be paid the determined purchase price per share in cash, less any applicable withholding taxes and without interest after expiration of the tender offer. All shares purchased in the tender offer will be purchased at the same purchase price, regardless of whether the shareowner tendered at a lower price. Shares tendered but not purchased will be returned promptly following the expiration of the tender offer. Subject to certain limitations and legal requirements, the company may purchase in the tender offer up to an additional 2 percent of its outstanding shares (or approximately 9.9 million shares) without extending the offer. Goldman, Sachs & Co. and UBS Securities LLC will serve as dealer managers for the tender offer. D.F. King & Co., Inc. will serve as information agent and Mellon Investor Services will serve as the depositary. Based in Stamford, Connecticut, International Paper Company (NYSE: IP) -- http://www.internationalpaper.com/-- is in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia. Its South American operations include, among others, facilities in Argentina, Brazil, Bolivia, and Venezuela. These businesses are complemented by an extensive North American merchant distribution system. International Paper is committed to environmental, economic and social sustainability, and has a long-standing policy of using no wood from endangered forests. * * * Moody's Investors Service assigned a Ba1 senior subordinate rating and Ba2 Preferred Stock rating on International Paper Company on Dec. 5, 2005. PRIDE INT'L: Fitch Upgrades Issuer Default Rating to BB from BB- ---------------------------------------------------------------- Fitch Ratings has raised Pride International's Issuer Default Rating to 'BB' from 'BB-'. Fitch also raised the ratings on Pride's senior secured revolving credit facility, senior unsecured notes and their convertible senior notes. Fitch is withdrawing the ratings on the senior secured term loan after its repayment. The Rating Outlook is Stable. Fitch upgrades these ratings for Pride: -- Issuer Default Rating: to 'BB' from 'BB-'; -- Senior unsecured to: 'BB' from 'BB-'; -- Senior secured bank facility to: 'BBB-' from 'BB+'; and -- Senior convertible notes to 'BB' from 'BB-'. The rating action reflects Pride's commitment to deleveraging the balance sheet and the execution on that commitment since Fitch raised the Outlook to Positive in May 2005. Total balance sheet debt was US$1,079.3 million as of June 30, 2006. With unrestricted cash balances of US$100.9 million, this reflects the first time since 1998 that net debt has fallen below US$1 billion. Pride has capitalized on the positive offshore drilling environment to combine proceeds from selling underperforming assets with strong operating cash flows to reduce debt and improve the company's asset base. Pride's credit stats reflect these improvements as well as the strong market conditions for offshore drilling rigs. For the last 12 months ended June 30, 2006, Pride generated US$664.0 million of EBITDA and free cash flow (cash from operations less capital expenditures) was US$233.1 million. Credit metrics were robust with interest coverage of 8.2x and debt-to-EBITDA dropping to 1.6x. After adjusting for off-balance sheet items, interest coverage was 4.8x and debt-to-EBITDA was 2.3x, both significantly better than year-end 2005 levels and representative of the improvements management has made to reduce the risk profile of the company. Fitch continues to have a positive view of Pride's management and their plan for transitioning the company to an offshore drilling contractor. While Fitch anticipates additional improvements in the company's credit metrics as older contracts are replaced, the rating Outlook is Stable as the company continues moving forward through this transition period. Uncertainty regarding the Foreign Corrupt Practices Act or FCPA investigation and the strength of the company's financial controls combined with uncertainties regarding the sale of the Latin American operations has resulted in the Stable Outlook. Pride's ability to make sustainable improvements to the competitive nature of its asset base through the sale of weak assets and/or the addition of stronger assets will be a key determinant to future positive rating action and the company's ability to withstand any future downturn in the industry. In particular, Fitch's ability to have a additional visibility into the cash flow generating ability of Pride post the Latin American operations divestiture and the re-deployment of those proceeds will be an important item that Fitch will monitor as the company transitions to a pure offshore driller. Further, Pride's ability to fund this transition via internally generated cash flows and asset sales versus its choice of externally generated funds will also be of importance. Pride is one of the world's largest drilling contractors and provides onshore and offshore drilling and related services in more than 30 countries, operating a diverse fleet of 278 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jack-up rigs and 18 tender-assisted barge and platform rigs, as well as 218 land rigs. Pride also provides a variety of oilfield services to customers in Argentina, Venezuela, Bolivia and Peru. * BOLIVIA: Speeding Up Talks on Planned Pipeline with Argentina --------------------------------------------------------------- Bolivia will step up talks with Argentina on a proposed pipeline project linking the two countries, Dow Jones Newswires. Dow Jones relates that the pipeline, known as the Northeast Argentina Gas Pipeline or GNEA, would allow Bolivia to sell Argentina an additional 20 million cubic meters of natural gas per day, which is two and a half times the amount it currently ships to Argentina on a daily basis. Bolivia's Vice President Alvaro Garcia Linera and Julio de Vido, the planning minister of Argentina, disclosed to the press on Monday that their countries would sign an accord by October and award a contract for the GNEA's construction before the end of 2006. Dow Jones notes that demand for Bolivian gas in Argentina has exceeded the capacity of the two nation's existing pipeline, which was constructed over 30 years ago. According to the report, the current Argentine-Bolivian pipeline can carry up to 7.7 million cubic meters of oil per day. Dow Jones underscores that Techint, a company in Argentina, has shown interest in making a bid for the GNEA project, which was expected to cost US$1 billion. GNEA's construction will start after the state energy firms of Bolivia and Argentina can decide on a price of the gas the pipeline will carry, Dow Jones says. GNEA would provide a key link between Bolivia's extensive natural gas reserves and the expanding South American energy market. Uruguay and Paraguay have expressed interest in buying a share of the gas pumped through GNEA, Dow Jones states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * BOLIVIA: Trade Institute Reports Lower Exports to Venezuela ------------------------------------------------------------- For the first six months of 2006, Bolivia's exports to Venezuela dropped to US$90 million from US$92 million last year, El Universal reports, citing a report from the Bolivian Trade Institute. Trade Institute manager Gary Rodriguez told Efe that that figure raise serious questions "about the efficiency of the Peoples' Trade Accord, through which the (Bolivian) Government hoped to encourage trade." Bolivia hosted in May a fair to encourage trade from both the Peoples' Trade Accord and the Bolivarian Alternative for the Americas -- both accords are aimed to counter the US-sponsored Free Trade Agreements. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== AGCO CORP: Moody's Affirms Ba2 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed AGCO Corp.'s Ba2 corporate family rating and B1 senior subordinated rating, and changed the company's outlook to stable from negative. The affirmation and change in outlook reflect Moody's expectation that the company's successful cost reduction and working capital management initiatives will support further improvement in free cash flow and key credit metrics, despite the severe slowdown in Latin American agricultural equipment markets and the more moderate declines in North American and European markets. The outlook also anticipates that one of AGCO's key near-term financial priorities will be utilizing free cash flow to strengthen its balance sheet by reducing debt or increasing cash reserves. In addition, the rating agency expects that any material shareholder enhancement initiatives will be undertaken only to the extent that free cash generation remains strong, and that such initiatives would still allow for further improvement in credit metrics. The agricultural equipment market consists of three global players (including AGCO) and a number of regional competitors. A key component of AGCO's operating strategy has been to act as a consolidator by steadily undertaking acquisitions and aggressively reducing costs through restructuring programs as the acquired operations were integrated. Throughout this process AGCO has largely preserved its position as an assembler with a relatively low degree of vertical integration and fixed costs. Moody's believes that AGCO has established a globally competitive product line and a solid distribution system. Consequently, further strategic and large tactical acquisitions are unlikely. In addition, the progress AGCO has made in lowering its cost structure and reducing inventory levels should enable it to improve operating margins despite the downturn in agricultural equipment markets, particularly Latin America. As a result of the current downturn in demand, AGCO's operating performance has eroded and credit metrics are weak for the current rating level. For the last twelve months to June 2006 operating margins declined to 5.2% from 6.1% in 2004, EBIT/interest was only 2.1x, and debt/EBITDA was a relatively high 5.1x. Importantly, however, free cash flow has remained positive and approximated US$100 million for the LTM to June -- excluding the transfer of interest bearing wholesale receivables to it finance joint venture. Although overall demand through 2006 will remain near or modestly below recent levels, Moody's believes that the benefits of AGCO's operational restructurings are gaining traction. As a result, credit metrics should begin to show steady improvement and should position the company more solidly within the Ba2 rating category, with interest coverage approaching 2.5x, debt/EBITDA falling below 4.5x, and free cash flow approaching $150 million. Notwithstanding Moody's expectation that AGCO's credit metrics will improve, the company will continue to face considerable cyclicality in its markets, as evidenced by the current downturn and by the company's current focus on strengthening its balance sheet. Moreover, while AGCO benefits from approximately US$100 million in annual free cash flow and a largely unutilized US$300 million revolving credit facility, the robustness of the company's liquidity position is moderated by limited head room under the revolver's financial covenants and by the fact that the majority of its assets have been pledged as collateral under its revolving credit facility and a US$400 million term loan. Headquartered in Duluth, Georgia, Agco Corp. -- http://www.agcocorp.com/-- is a global manufacturer of agricultural equipment and related replacement parts. Agco offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in more than 140 countries worldwide, including Brazil. AGCO products include the following brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company had net sales of US$5.4 billion in 2005. AMERICAN AXLE: S&P Rates US$50MM Sr. Unsecured Term Loan at BB -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to the new US$50 million senior unsecured term loan of American Axle & Manufacturing Inc. (BB/Negative/--). American Axle's recently completed term loan credit facility provided the ability to issue this incremental term loan. Proceeds from the new term loan will be used to reduce borrowings under the company's revolving credit facility. The corporate credit ratings on American Axle and parent company, American Axle & Manufacturing Holdings Inc., are 'BB'. The rating outlook is negative. The company has about US$717 million of lease-adjusted debt and US$425 million of underfunded employee benefit liabilities. The ratings on American Axle reflect the risks associated with the company's heavy dependence on the General Motors Corp. (GM; B/Watch Neg/B-3) SUVs and pickup trucks, current relatively narrow product range, and American Axle's exposure to cyclical and competitive markets. These factors are tempered by American Axle's -- high market shares, -- high-value-added product portfolio, and -- good R&D capabilities. Ratings List American Axle & Manufacturing Inc. Corporate credit rating BB/Negative/-- Senior unsecured debt BB American Axle & Manufacturing Holdings Inc. Corporate credit rating BB/Negative/-- Senior unsecured debt BB BANCO PANAMERICANO: Moody's Assigns B2 Rating on US$75MM Notes -------------------------------------------------------------- Moody's Investors Service assigned a B2 long-term foreign currency debt rating to the second tranche of Banco PanAmericano S.A.'s Step-up subordinated notes due 2016 in the amount of US$75 million. The outlook on the rating is stable. The rating agency noted that the subordination of the notes was taken into consideration and applied to Banco PanAmericano's Ba3 global local currency deposit rating. At this rating level, Moody's notching guidelines determine a two-notch differential from the base rating. The US$75 million tranche is in addition to US$50 million notes issued in July 2006, and brings Banco PanAmericano's total outstanding subordinated debt to US$125 million. On June 15, 2006, Moody's assigned a D- bank financial strength rating and a Ba3 global local currency rating to PanAmericano. The ratings reflect the bank's focused operation as a consumer lender, catering to a diversified customer and product base, both of which ensure high profitability and core earnings. The bank's core earnings, measured as pre-provision profits as a percentage of average total assets, at levels of nearly 10% for the past 3 years, reflect PanAmericano's high-yielding loan book, despite a higher than peers' operating costs. However, Moody's notes, high cost of credit and a limited capital base constrain the ratings for PanAmericano, and results in asset quality indicators that compare poorly to that of its peers'. Banco PanAmericano is headquartered in Sao Paulo, Brazil and had total assets of BRL2.54 billion and equity of BRL413 million in March 2006. This rating was assigned: US$75 million Subordinated Notes: B2 long-term foreign currency debt rating, stable outlook. BANCO NACIONAL: Approves BRL117.3-Mil. Financing to Coelba ---------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES approved a BRL 117.3-million financing to Coelba, the electric power distribution company in the State of Bahia. The total investment will amount BRL201.2 million and the concessionaire will apply BRL83.9 million by using its own resources. With the intermediation of four BNDES financing agents: -- Banco do Brasil, -- Votorantim, -- Bradesco and -- Santander, the credit operation is directed to finance the concessionaire investment plan execution for the expansion and modernization of its distribution network, to meet more than 200,000 new users. Coelba is an electric power distributor managed by Neoenergia S.A., having as its majority shareholder the Banco do Brasil Employees' Pension Fund or Previ with 49%. Iberdrola Spanish group is the second largest shareholder, with 39%, and Banco do Brasil has the remaining 12%. Investments performed by Neoenergia group to Coelba from 1997, already amounted to BRL4.5 billion. Only last year, the holding company invested BRL510 million in Coelba. Due to permanent investments in planning, control, operational and maintenance studies, and the digitalization and automation of its operational systems, Coelba has been achieving significant gains in quality and confidence. It has also managed to reduce interruptions in electric power supply and decrease support service average time in occurrences of interruption. With this, the number of complaints dropped by 150,000 in 2001 to 20,000 in 2005. Currently, 134 out of 260 Coelba substations are already totally automatized. The operations of those substations are interlinked with Operational Centers and such substations already respond by 80% of the total installed electric power distribution. * * * As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. BANCO NACIONAL: Grants BRL114.7-Mil. Financing to Marisa Lojas -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES approved a financing of BRL 114.7 million to Marisa Lojas Varejistas Ltda. for the expansion and repair of its store network. The expansion of the Marisa store chain started in 2005 and will be implemented by the year of 2007. It is a direct operation that will allow the opening of 19 stores, expansion of 30 units and repair of 12 units, in the States of: -- Sao Paulo, -- Rio de Janeiro, -- Minas Gerais, -- Rio Grande do Sul, -- Parana, -- Santa Catarina, -- Distrito Federal, -- Mato Grosso do Sul, -- Bahia, -- Ceara, -- Para, -- Paraiba, -- Pernambuco, -- Sergipe, -- Rio Grande do Norte, -- Alagoas, -- Maranhao, -- Amazonas, -- Rondonia, -- Tocantins and -- Acre. With the implementation of this project, Marisa Lojas expects to generate 2,150 direct jobs and 7,550 indirect jobs. Marisa Lojas has the objective of strengthening its presence in places where it already operates, by investing in a new store concept called "Marisa Ampliada" or "Enlarged Marisa". The new proposal has a blend of more complete and differentiated products than its current program. The new concept is aimed at optimizing the use of the selling area and modernizing goods exhibition, besides controlling the trademark in which it operates. This concept enables the increase in competitiveness as a result of the growth in sales, improvement in the existing logistics and dilution of fixed costs. Headquartered in Sao Paulo, Brazil, The Marisa network is comprised of 153 stores and is present in 25 states. It belongs to the Goldfarb group and employs over 7,500 people. * * * As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. PETROLEO BRASILEIRO: Unit Acquires Stake in Cascade & Chinook ------------------------------------------------------------- Petrobras America Inc., a wholly owned subsidiary of Petroleo Brasileiro S.A., disclosed the acquisition of additional participation of 25% in the Cascade and 26.67% in the Chinook discoveries from BHP Billiton. Petrobras also agreed to buy up to the 15% interest that Hess holds in the Chinook project. Upon completion of these transactions the company will own 50% and up to 71.67% in Cascade and Chinook, respectively, and will be the operator of the two field developments. The remainder participations in Cascade and Chinook will be respectively held by Devon and Total. Both Cascade and Chinook are located in the Walker Ridge OCS leasing area in water depths ranging from 78,000 ft to 910,000 ft. The two acquisitions have significant oil pays as in the Eocene Paleogene reservoirs, at depths of around 27,000 ft. for both discovery wells. Subsequent appraisal wells and a sidetrack of this appraisal confirmed the extension of the Cascade oil reservoirs while an appraisal well is being planned for Chinook in the near future. Given the technological and operational challenges that these developments pose Petrobras will pursue a fast track, phased development approach, with first oil scheduled for 2009. Initially, at least and two Cascade wells and at least one Chinook well will be completed and brought onstream through a Floating Production Storage and Offloading facility or FPSO. Subsequent wells and facilities will be designed in accordance with the initial production results. The development of Cascade and Chinook is enormously important for the U.S. Gulf of Mexico oil and gas industry. In addition to tapping into Paleogene oil reservoirs never developed in this ultra deep water region, it will deploy a development concept based on a FPSO, new to the USA waters, but very familiar to Petrobras in its operations offshore Brazil. In addition to these two field developments, Petrobras is conducting a very aggressive exploration campaign in the GOM, which includes acquisition of additional acreage and a participation in wells being drilled or planned for the near future in the shelf deep gas shelf play, the Garden Banks, and the Corpus Christi areas and the ultra deep water regions. In order to deliver this program, Petrobras recently awarded a five-5 year contract to a drilling contractor for a rig capable of operating in water depths of 10,000 ft, and is in negotiations for another rig. Both rigs are to be allocated to Petrobras GOM, its US operation. Petrobras is also the operator of the Cottonwood gas field development, in the Garden Banks area, with 80% participation. Consisting of a subsea tie back to existing facilities in shallower water, the production start up is scheduled for the beginning of 2007. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in the country. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's and its foreign currency long-term debt is rated BB- by Fitch. * * * As reported in the Troubled Company Reporter on April 26, 2006, in conjunction with the roll out of Issuer Default Ratings and Recovery Ratings for Latin America Corporates, Fitch Ratings has taken rating actions on Petroleo de Brasileiro SA. These ratings were affected: Foreign Currency: -- Previous Rating: 'BB-' -- New RR: 'BB', Rating Outlook Positive US$2.5 billion, Senior Unsecured Notes due 2008, 2013, 2014 and 2018: -- Previous Rating: 'BB-' -- New IDR: 'BB+' * BRAZIL: Will Discuss Itaipu Dam Debt Payment with Paraguay ------------------------------------------------------------ Paraguay's ministers will meet with their Brazilian counterparts on Aug. 17 to discuss debt payments on the construction of the Itaipu hydroelectric dam that the two nations jointly owned, Dow Jones notes, citing, Silas Rondeau, the mines and energy minister of Brazil. Dow Jones relates that it was the second session held regarding the proposal to abolish a clause that says the repayment of the debt would depend on US inflation. The Itaipu dam has a generating capacity of 12,600 megawatts, Dow Jones reports. The dam's construction -- completed in 1983 -- was mainly funded by the Brazilian government, leaving a US$19 billion debt. Paraguay's repayments on the debt were based on US inflation during renegotiations to the debt in 1996. Dow Jones states that the Brazilian government refuses to change the terms of the accord but is willing to avoid an argument with Paraguay. Brazil already has conflict with Bolivia regarding the former's state firm Petroleo Brasileiro SA operations in the latter. Bolivia's President Evo Morales had implemented a nationalization of the hydrocarbons sector in May, insisting for a renewal of contracts on prices for gas shipped to Brazil, Dow Jones reports. * * * Fitch Ratings assigned these ratings on Brazil: Rating Rating Date ------ ----------- Country Ceiling BB- Nov. 18, 2004 Long Term IDR BB- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB- Dec. 14, 2005 =========================== C A Y M A N I S L A N D S =========================== ARGENT NIM 2003-N6: Final Shareholders Meeting Is on Sept. 7 ------------------------------------------------------------ Argent Nim 2003-N6's shareholders will convene for a final meeting on Sept. 7, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidators can be reached at: Chris Watler Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ARGENT NIM 2003-N8: Last Shareholders Meeting Is Set for Sept. 7 ---------------------------------------------------------------- Argent Nim 2003-N8's shareholders will convene for a final meeting on Sept. 7, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidators can be reached at: Chris Watler Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ARGENT NIM 2004-WN4: Final Shareholders Meeting Is on Sept. 7 ------------------------------------------------------------- Argent Nim 2004-WN4's shareholders will convene for a final meeting on Sept. 7, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidators can be reached at: Chris Watler Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands CHARLOTTE LIMITED: To Hold Final Shareholders Meeting on Sept. 7 ---------------------------------------------------------------- Charlotte Limited's shareholders will convene for a final meeting on Sept. 7, 2006, at: Ansbacher (Cayman) Limited Clifton House, 75 Fort Street, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidators can be reached at: Cromer Limited Cawsand Limited P.O. Box 887, George Town Grand Cayman, Cayman Islands CITRIX CAYMAN: Holding Final Shareholders Meeting on Sept. 7 ------------------------------------------------------------ Citrix Cayman Finance Group, Ltd.' final shareholders meeting will be on Sept. 7, 2006, at: Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion, and 3) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting may appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Karen Leopardi c/o Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands EQUITY LCI: Deadline for Proofs of Claim Filing Is on Sept. 8 ------------------------------------------------------------- Equity LCI Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Equity LCI's shareholders agreed on July 21, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 EQUITY MIA: Creditors Have Until Sept. 8 to File Proofs of Claim ---------------------------------------------------------------- Equity MIA Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Equity MIA's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 INVESTCORP (INVESTING): Proofs of Claim Filing Is Until Sept. 8 --------------------------------------------------------------- Investcorp Minimax Investing Financing Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Investcorp Minimax's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 INVESTCORP (ISLAMIC): Proofs of Claim Must be Filed by Sept. 8 -------------------------------------------------------------- Investcorp Minimax Islamic Financing Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Investcorp Minimax's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 MINIMAX EQUITY: Deadline for Proofs of Claim Filing Is Sept. 8 -------------------------------------------------------------- Minimax Equity Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Minimax Equity's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 MINIMAX FUNDING: Last Day to File Proofs of Claim Is on Sept. 8 --------------------------------------------------------------- Minimax Funding Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Minimax Funding's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 MINIMAX IIP: Creditors Must Submit Proofs of Claim by Sept. 8 ------------------------------------------------------------- Minimax IIP Limited's creditors are required to submit proofs of claim by Sept. 8, 2006, to the company's liquidator: Westport Services Ltd. P.O. Box 1111 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Sept. 8 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Minimax IIP's shareholders agreed on July 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Bonnie Willkom P.O. Box 1111 Grand Cayman, Cayman Islands Tel: (345) 949-5122 Fax: (345) 949-7920 SF BONDS: Yukio Taniguchi Named as New Trustee for Proceeding ------------------------------------------------------------- The Grand Cayman Court has appointed Yukio Taniguchi as the new trustee to handle SF Bonds Investment Cayman Limited's winding- up proceeding. The appointment was made after the company's shareholders passed a resolution on July 13, 2006, accepting the resignation of Richard Gordon and Mike Hughes as liquidators. The new liquidator can be reached at: Yukio Taniguchi Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SF Bonds' shareholders agreed on May 29, 2006, to place the company into voluntary liquidation under Section 135 of Cayman's Companies Law (2004 revision). SF BONDS: Shareholders Gather for a Final Meeting on Sept. 7 ------------------------------------------------------------ SF Bonds Investment Cayman Limited's shareholders will convene for a final meeting on Sept. 7, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidator can be reached at: Yukio Taniguchi Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SF Bonds' shareholders agreed on May 29, 2006, to place the company into voluntary liquidation under Section 135 of Cayman's Companies Law (2004 revision). ZEST INVESTMENT: Holding Final Shareholders Meeting on Sept. 7 -------------------------------------------------------------- Zest Investment VI's final shareholders meeting will be at 10:00 a.m. on Sept. 7, 2006, at: BNP Paribas Bank & Trust Cayman Limited 3rd floor Royal Bank House, George Town Grand Cayman, Cayman Islands These agenda will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion, and 3) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting may appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Puccadilly Cayman Limited Att: Regina Forman Darren Riley 3rd Floor Royal Bank House, George Town Grand Cayman, Cayman Islands Tel: 345 945 9208 Fax: 345 945 9210 =============== C O L O M B I A =============== CA INC: Commences US$1 Billion Tender Offer on Outstanding Stock ---------------------------------------------------------------- CA Inc. commenced its tender offer to purchase up to approximately 40,816,327 shares of its outstanding common stock, at a price not less than US$22.50 and not greater than US$24.50 per share (in increments of US$0.25), yesterday. This represents the initial phase of the US$2 billion stock repurchase plan the company announced on June 29, 2006. CA anticipates that it will pay for the shares purchased in the offer and the related fees and expenses from bank borrowings and available cash. Depending on how the company chooses to finance the share repurchase program, its ability to borrow under its existing credit facility could be restricted unless it obtains a waiver from its credit facility lending banks. If necessary, the company will seek a waiver of the restriction. Although the company expects that it will be able to finance the aggregate purchase price to complete the offer from bank financing and available cash, the company cannot provide any assurance that it will receive financing with satisfactory terms and conditions. The tender offer also is subject to a number of other important conditions. CA is considering various options to execute the second phase of the program and will provide further details when appropriate. The company expects to complete the full $2 billion share repurchase plan by the end of fiscal year 2007. The tender offer will expire at 5 p.m. New York Time on Sept. 14, 2006, unless the company extends the expiration on the offer. Tenders of shares must be made on or prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer. Under the terms of the tender offer, based on the number of shares of common stock tendered and the prices specified by the tendering stockholders, CA will determine the lowest per-share price within the range that will enable it to buy 40,816,327 shares of common stock, or, if a lesser number of shares is validly tendered, all shares that are validly tendered and not validly withdrawn. All shares of common stock purchased in the tender offer will be purchased at the same determined price per share regardless of whether the stockholder tendered at a lower price. If holders of more than 40,816,327 shares of common stock validly tender their shares at or below the determined purchase price per share, the shares will be purchased on a pro rata basis except for "odd lots" -- lots held by stockholders of less than 100 shares who tender all of their shares-which will be purchased on a priority basis, and conditional tenders whose condition was not met, which will not be purchased. Stockholders whose shares of common stock are purchased in the tender offer will be paid the determined purchase price net in cash, without interest after the expiration of the offer period. CA's executive officers and members of the Board of Directors have advised the company that they do not intend to participate in the tender offer. The dealer managers for the tender offer are Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. Innisfree M&A Incorporated is serving as the information agent and Mellon Investor Services is serving as the depositary for the tender offer. About CA Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. In Latin America, CA has operations in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. * * * As reported in the Troubled Company Reporter on Aug. 7, 2006, Moody's Investors Service confirmed CA Inc.'s Ba1 senior unsecured rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on June 30, 2006. The Ba1 rating confirmation reflects the company's completed accounting review and reestablishment of current filing of its 10-K and subsequent 10-Q's, including the company's filing of its 10-K for its March 2006 fiscal year on July 31, 2006. Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on CA Inc., and removed them from CreditWatch where they were placed on July 5, 2006 with negative implications. S&P said the outlook is negative. ECOPETROL: Petrobras Vying for Majority Stake in Cartagena Plant ---------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras and Glencore International AG will bid for a 51% stake in the Cartagena refinery of Ecopetrol, Colombia's state-owned oil firm. Petrobras' decision to bid for Ecopetrol's plant is part of its strategy to expand markets for its heavy crude. Amir Barbassa, the chief financial officer of Petrobras, said that the firm is seeking for more markets for heavy crude it produces in Brazil, selling it at a discount price of US$11 per barrel. The firm plans to process a maximum of heavy Brazilian oil in Ecopetrol's Cartagena refinery, Mr. Barbassa notes. Ecopetrol, which is looking for a private partner to increase the capacity of the Cartagena refinery to 140,000 barrels daily, will disclose the winning bidder -- the company that offers the highest capital investment -- on Aug. 25, 2006. The new partner would invest as much as US$800 million while Ecopetrol would invest up to US$250 million. As Colombia's diesel production doesn't meet its domestic needs, the country decided to expand its Cartagena refinery through selling part of it to an entity willing to upgrade and expand it. The nation is currently purchasing 6,000 barrels of diesel per day from Venezuela and also imports diesel from the Dominican Republic. The upgrade and expansion project for the Cartagena plant includes new cracking and hydro-treatment units. The Colombian government hopes that the upgraded plant would start operations by the first half of 2010. However, bidders may propose their own schedule. Meanwhile, Ecopetrol also pre-qualified UK's BP PLC and Japan's Marubeni Corp. as potential bidders. However, both refused to file offers. About Petrobras Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in the country. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. On June 27, 2006, Fitch Ratings revised the rating outlook of the long-term foreign currency issuer default rating of Ecopetrol S.A. to Positive from Stable. This rating action follows the recent revision in the Rating Outlook to Positive from Stable of the 'BB' foreign currency IDR of the Republic of Colombia. Ecopetrol's IDR remain strongly linked with the credit profile of the Republic of Colombia. PETROLEO BRASILEIRO: Vying for Majority Stake in Ecopetrol Plant ---------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras will participate in the bidding for a 51% stake in the Cartagena refinery of Ecopetrol, Colombia's state-owned oil firm. The decision to bid for Ecopetrol's plant is part of Petrobras' strategy to expand markets for its heavy crude. Amir Barbassa, the chief financial officer of Petrobras, said that the firm is seeking for more markets for heavy crude it produces in Brazil, selling it at a discount price of US$11 per barrel. The firm plans to process a maximum of heavy Brazilian oil in Ecopetrol's Cartagena refinery, Mr. Barbassa notes. Ecopetrol, which is looking for a private partner to increase the capacity of the Cartagena refinery to 140,000 barrels daily, will disclose the winning bidder -- the company that offers the highest capital investment -- on Aug. 25, 2006. The new partner would invest as much as US$800 million while Ecopetrol would invest up to US$250 million. As Colombia's diesel production doesn't meet its domestic needs, the country decided to expand its Cartagena refinery through selling part of it to an entity willing to upgrade and expand it. The nation is currently purchasing 6,000 barrels of diesel per day from Venezuela and also imports diesel from the Dominican Republic. The upgrade and expansion project for the Cartagena plant includes new cracking and hydro-treatment units. The Colombian government hopes that the upgraded plant would start operations by the first half of 2010. However, bidders may propose their own schedule. Meanwhile, Ecopetrol also pre-qualified UK's BP PLC and Japan's Marubeni Corp. as potential bidders. However, both refused to file offers. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. About Petrobras Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in the country. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's and its foreign currency long-term debt is rated BB- by Fitch. * * * As reported in the Troubled Company Reporter on April 26, 2006, in conjunction with the roll out of Issuer Default Ratings and Recovery Ratings for Latin America Corporates, Fitch Ratings has taken rating actions on Petroleo de Brasileiro SA. These ratings were affected: Foreign Currency: -- Previous Rating: 'BB-' -- New RR: 'BB', Rating Outlook Positive US$2.5 billion, Senior Unsecured Notes due 2008, 2013, 2014 and 2018: -- Previous Rating: 'BB-' -- New IDR: 'BB+' * COLOMBIA: Resumes Third Round of Free Trade Treaty Talks ---------------------------------------------------------- Colombia resumed on Tuesday the third round of Free Trade Treaty talks with El Salvador, Guatemala and Honduras at Medellin's Plaza Mayor Convention Center, Prensa Latina reports. Prensa Latina relates that the talks were aimed at reaching a trade agreement among the countries. The initiative wants to have a stable access, preferential and permanent to the main markets of the world. This new challenge obeys to a long-time commercial policy of Colombia and its government, Eduardo Munoz, the nation's foreign trade vice minister, told Prensa Latina. Vice Minister Munoz mentioned to Prensa Latina the closeness of the region in culture, language and other factors for a commercial integration. He also said that Colombian entrepreneurs have a significant presence in the Central American market, which has been seeking for new commercial partners. Vice Minister Munoz told Prensa Latina, "If we get that preferential access we will be able to consolidate the Colombian presence in the Central American market." Due to "air and sea interconnection" problems between Colombia has with the rest of Central America, the two parties' aircraft authorities will hold a meeting on Thursday to study possible measures, Prensa Latina states, citing the vice minister. * * * On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as: -- Long-term foreign currency 'BB'; -- Country ceiling 'BB'; -- Local currency 'BBB-'; -- Short-term 'B'. Fitch said the Rating Outlook is Stable. =================== C O S T A R I C A =================== DENNY'S CORP: Reports Same-Store Sales for July ----------------------------------------------- Denny's Corp. reported same-store sales for its company-owned Denny's restaurants for the week-ended July 26, 2006, compared with the related period in fiscal year 2005. Sales: July 2006 YTD 2006 Same-Store Sales 3.0% 2.2% Guest Check Average 4.2% 5.7% Guest Counts (1.1%) (3.3%) Restaurant Counts: 7/26/06 12/28/05 Company-Owned 543 543 Franchised and Licensed 1,025 1,035 ------------- ------------ 1,568 1,578 Headquartered in Spartanburg, South Carolina, Denny's Corp. -- http://www.dennys.com/-- is America's largest full-service family restaurant chain, consisting of 543 company-owned units and 1,035 franchised and licensed units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. At June 28, 2006, Denny's Corp.'s balance sheet showed a US$257,947,000 stockholders' deficit compared with US$266,547,000 deficit at Dec. 28, 2005. * COSTA RICA: Government Will Tax Financial Services ---------------------------------------------------- The government of Costa Rica is planning to introduce a plan to tax financial services, in an effort to increase revenue, Inside Costa Rica reports. Inside Costa Rica relates that the new tax was criticized as it could reduce the number of Costa Ricans using banks, preferring to pay cash, as they will be paying more on the financial services due to the new tax. Banking experts told Inside Costa Rica that if there would be lesser bank transactions, banking services will be more costly as banks have less resources to operate with. At present, several workers prefer to use direct deposit and use ATM cards or credit cards to make their purchases and suppliers get paid by cheques and/or electronic payments, Inside Costa Rica says. Noman Solano of ICS Consultores told Inside Costa Rica that small-to-medium-sized firms will also opt to paying cash to suppliers and employees instead of using cheques and electronic banking systems. According to the report that taxation on financial services has been implemented in several South American nations. It resulted in uneven results for the economy and controversy over its application. Inside Costa Rica notes that the Costa Rican government pretends to tax CRC4 on each CRC1,000 transaction, with an objective set on using the tax revenue to pay losses the country's Banco Central incurred. Banco Central is a major component of inflation in Costa Rica. The report says that it is yet unclear if the tax would be imposed on all transactions or on specific types of transaction and if there will be limit, low and high, and if applies only to local currency transactions or dollars or both. The amount of revenue the tax will generate for the government coffers and its manner of implementation was also not disclosed. "The initial impact will be a great recollection of tax, but with time it will evaporate as consumers defer using cheques and plastic, preferring to use cash," Jorge Guardua, an economic advisor at Deloitte, told La Republica. A reduced than expected revenue from the tax could happen. Financial institutions might also lose track of financial transactions, an important source of information for banks, Inside Costa Rica states. * * * Costa Rica is rated by Moody's: -- CC LT Foreign Bank Depst Ba2, -- CC LT Foreign Curr Debt Ba1, -- CC ST Foreign Bank Depst NP, -- CC ST Foreign Curr Debt NP, -- Foreign Currency LT Debt Ba1, and -- Local Currency LT Debt Ba1. Fitch assigned these ratings to Costa Rica: -- Foreign currency long-term debt, BB, -- Local currency long-term debt, BB, and -- Foreign currency short-term debt, B. Costa Rica carries these ratings from Standard & Poor's: -- Foreign Currency LT Debt BB, -- Local Currency LT Debt BB+, -- Foreign Currency ST Debt B, and -- Local Currency ST Debt B. ======= C U B A ======= * CUBA: Bolivian Trade Institute Notes Zero Export to Venezuela --------------------------------------------------------------- For the first six months of 2006, Cuban export to Venezuela was nil, El Universal reports, citing a report from the Bolivian Trade Institute. The report underscores that in 2005, Cuba posted US$5000 in exports to Venezuela. The result raised serious questions from the private sector regarding the efficiency of the Peoples' Trade Accord and the Bolivarian Alternative for the Americas among Venezuela, Bolivia and Cuba. Both accords were aimed to counter US-sponsored Free Trade Agreements, El Universal says. Bolivia hosted in May a fair to encourage trade from both the Peoples' Trade Accord and the Bolivarian Alternative for the Americas. * * * Moody's assigned these ratings to Cuba: -- CC LT Foreign Bank Depst, Caa2 -- CC LT Foreign Curr Debt, Caa1 -- CC ST Foreign Bank Depst, NP -- CC ST Foreign Curr Debt, NP -- Issuer Rating, Caa1 =================================== D O M I N I C A N R E P U B L I C =================================== FALCONBRIDGE LTD: Xstrata Acquires 67.8% of the Company's Shares ---------------------------------------------------------------- Xstrata plc has disclosed that 257,700,100 common shares of Falconbridge Limited had been validly deposited to Xstrata's offer to acquire all Falconbridge common shares not already owned by the company. Xstrata has taken up and accepted for payment all shares tendered, which represent approximately 67.8% of the issued and outstanding Common Shares on a fully diluted basis. Xstrata now beneficially owns 349,922,526 Common Shares or approximately 92.1% of the issued and outstanding Common Shares on a fully diluted basis. Payment will be made to shareholders who have tendered their shares on or before Aug. 17, 2006. In line with Xstrata's intention to acquire 100% of Falconbridge as soon as possible, the company has also extended the expiry date of its all-cash offer to enable the remaining Falconbridge shareholders to receive prompt payment of the same CDN$62.50 per share consideration under the offer. The offer will now expire at midnight (Vancouver time) on Aug. 25, 2006. All other terms and conditions of Xstrata's offer described in its offer and offering circular dated May 18, 2006, as varied, amended, and supplemented, remain unchanged. Xstrata intends to acquire all Common Shares not tendered to the offer following the expiry of the offer pursuant to a compulsory acquisition or subsequent acquisition transaction. Xstrata has now taken effective control of Falconbridge and both management teams are working closely together to facilitate a smooth and swift integration of the two businesses. Falconbridge shareholders with questions or requests for copies of the documents, may contact: Kingsdale Shareholder Services Inc. Tel: 1-866-639-7993 Banks and brokers should call at 416-867-2272. About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and Canada. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL) (NYSE:FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDNUS$150 million 5% convertible and callable bonds due April 30, 2007, carries Standard & Poor's BB+ rating. TAG-IT PACIFIC: Posts US$665,000 Second Quarter 2006 Net Income --------------------------------------------------------------- Tag-It Pacific, Inc., disclosed financial results for its second quarter and six-month period ended June 30, 2006. For the three months ended June 30, 2006, Tag-It Pacific reported net income of US$655,000, or US$0.04 per share, as compared with a net loss for the same period in 2005 of US$12,476,000, or US$0.68 per share. "The quarter's net income results are very encouraging and represent an important turning point for the Company," commented Stephen Forte, the company's CEO. "Our strategic concentration on growing the business through quality, profitable sales, expanding our customer base, and continuing to focus on lowering costs is principally responsible for the positive performance," Mr. Forte said. The net income for the quarter includes a US$46,000 non-cash compensation charge for employee stock options in accordance with FAS 123R that was adopted by the company in 2006. For the six months ended June 30, 2006, Tag-It Pacific reported a net loss of US$74,000, or US$0.00 per share, as compared with a net loss for the first six months of 2005 of US$14,125,100, or US$0.78 per share. The FAS 123R charge included in earnings for the six-months ended June 30, 2006, was US$165,000. Sales for the three months ended June 30, 2006, were US$14,246,000 as compared with sales of US$15,640,000 for the same quarter in 2005. The decline in sales for the quarter is principally the result of the elimination of lower-margin sales activities in Mexico and Central America that were discontinued in the fourth quarter of 2005. Despite the lower volumes, gross profit for the three months ended June 30, 2006, increased over the same period in 2005 by US$3.4 million as the Company eliminated substantial operating and manufacturing costs, avoided excess inventory and obsolescence costs, and improved its overall margin on sales. For the six months ended June 30, 2006 sales were US$24,884,000, as compared with sales of US$28,695,000 for the same period in 2005. The sales decline for the six months results from the discontinuance of lower-margin sales activities in Mexico and Central America as noted above and the impact of our shift in focus to the rapidly growing apparel markets in Asia as the Company's sales base in Mexico and the U.S. declines. Gross margins for the six months ended June 30, 2006 improved US$3.0 million as compared with the same period in 2005 as lower manufacturing and delivery costs and higher margin sales, offset the revenue decline. Operating expenses for the three and six months ended June 30, 2006, were lower than the same periods in 2005 by US$8.4 million and US$9.5 million, respectively. The cost reductions are partially the elimination of a US$6.5 million provision for uncollectible receivables in Mexico that was recorded in 2005, and the cost savings resulting from the organizational restructuring implemented in the third quarter of 2005. "We believe our business opportunities are substantial and with our new organization structure, operating disciplines, and strategic focus we are confident that our plan will result in renewed shareholder confidence and value," Stephen Forte concluded. About Tag-It Pacific Tag-It Pacific, Inc., distributes apparel items to fashion manufacturers United States, Asia, Mexico, the Dominican Republic, and Central and South America. Also it offers formed wire metal zippers for the jeans and sportswear industries. Going Concern Doubt Singer Lewak Greenbaum & Goldstein, LLP, in Los Angeles, California, raised substantial doubt about Tag-It Pacific, Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's incurred net loss of US$29,537,709 and accumulated deficit of US$50,434,042 at December 31, 2005. ===================== E L S A L V A D O R ===================== * EL SALVADOR: Joins Third Round of Free Trade Treaty Talks ----------------------------------------------------------- El Salvador joined Tuesday the third round of Free Trade Treaty talks with Colombia, Guatemala and Honduras at Plaza Mayor Convention Center of Medellin, Colombia, Prensa Latina reports. Prensa Latina relates that the talks were aimed at reaching an FTT among the countries. The initiative wants to have a stable access, preferential and permanent to the main markets of the world. This new challenge obeys to a long-time commercial policy of Colombia and its government, Eduardo Munoz, the nation's foreign trade vice minister, told Prensa Latina. Vice Minister Munoz mentioned to Prensa Latina the closeness of the region in culture, language and other factors for a commercial integration. He also said that Colombian entrepreneurs have a significant presence in the Central American market, which has been seeking for new commercial partners. Vice Minister Munoz told Prensa Latina, "If we get that preferential access we will be able to consolidate the Colombian presence in the Central American market." Due to "air and sea interconnection" problems between Colombia has with the rest of Central America, the two parties' aircraft authorities will hold a meeting on Thursday to study possible measures, Prensa Latina states, citing the vice minister. * * * Fitch Ratings assigned these ratings on El Salvador: Rating Rating Date ------ ----------- Country Ceiling BB+ Jun. 18, 2004 Long Term IDR BB+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 ================= G U A T E M A L A ================= * GUATEMALA: Participates in Third Round of Free Trade Talks ------------------------------------------------------------ Guatemala participated in the third round of Free Trade Treaty talks with Colombia, El Salvador and Honduras at Plaza Mayor Convention Center of Medellin, Colombia, Prensa Latina reports. Prensa Latina relates that the talks were aimed at reaching an FTT among the countries. The initiative wants to have a stable access, preferential and permanent to the main markets of the world. This new challenge obeys to a long-time commercial policy of Colombia and its government, Eduardo Munoz, the nation's foreign trade vice minister, told Prensa Latina. Vice Minister Munoz mentioned to Prensa Latina the closeness of the region in culture, language and other factors for a commercial integration. He also said that Colombian entrepreneurs have a significant presence in the Central American market, which has been seeking for new commercial partners. Vice Minister Munoz told Prensa Latina, "If we get that preferential access we will be able to consolidate the Colombian presence in the Central American market." Due to "air and sea interconnection" problems between Colombia has with the rest of Central America, the two parties' aircraft authorities will hold a meeting on Thursday to study possible measures, Prensa Latina states, citing the vice minister. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ =========== G U Y A N A =========== DIGICEL LTD: To Enter Guyana Telecommunications Market ------------------------------------------------------ Digicel Group disclosed that it will receive a license from the Government of Guyana to operate a GSM network. The license will enable the company to offer Guyana cutting-edge technology and innovative, mobile telecommunications services while expanding its footprint into South America. Guyana has a population of nearly 800,000 people with mobile penetration at approximately 22%. Digicel expects to make a significant impact on the quality and standard of mobile telecommunications in this country by investing in state-of-the- art infrastructure and offering services and handsets that will deliver real value to its customers. The President of Guyana, Mr. Bharrat Jagdeo, received a cricket bat signed by members of the Digicel sponsored West Indies cricket team from Digicel Group CEO, Mr. Colm Delves. The cooperative government of Guyana has informed Digicel that it will receive a license to offer the country cutting-edge technology and innovative, mobile telecommunications services. The new license will also expand the company's market into South America. "The telecommunications industry has become increasingly important to Guyana now and for the future," said President of Guyana, Mr. Bharrat Jagdeo. "Digicel not only has an outstanding track record, but the company is a recognized telecommunications leader in the Caribbean. We are excited about Digicel's entry into Guyana and certainly looking forward to reaping the benefits of its customer-centric focus and innovative mobile telecommunications." Building on its continued mission to establish a seamless pan- Caribbean network and help bridge the technology divide from one nation to another, the new license will extend Digicel's reach to 21 markets across the region and comes in the wake of its launch in neighbouring French Guiana in June 2006. "Digicel is delighted to bring to Guyana the true benefits of accessible mobile technology and we are grateful to President Bharrat Jagdeo and the Ministry responsible for Telecommunications for their support," said Colm Delves, Digicel Group CEO. "We look forward to continuing our fruitful relationship with the Guyana government. This license will enable Digicel to contribute to Guyana's economic growth through job creation, sponsorships, and community-building initiatives." Tim Bahrani, a senior executive who has more than eleven years experience in mobile telecommunications management, will head Digicel Guyana's operation. Prior to joining Digicel, he previously held senior management positions at Celtel, Africa's leading mobile operator and Millicom International in Asia. With US$1.2 billion invested in the Caribbean over the past five years, Digicel has become one of the most admired and leading brands in the region as well as a significant employer of 2,000 staff members. About Digicel Digicel Limited is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 13 countries of the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * On July 12, 2006, Moody's Investors Service assigned a B3 senior unsecured rating to the US$150 million add-on Notes offering of Digicel Limited and affirmed Digicel's existing B3 senior unsecured and B1 Corporate Family Ratings. The outlook has been changed to stable from positive. Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel Limited's proposed add-on offering of US$150 million 9.25% senior notes due 2012. These notes are an extension of the US$300 million notes issued in July 2005. In addition, Fitch also affirms Digicel's foreign currency Issuer Default Rating and the existing US$300 million senior notes due 2012 at 'B'. Fitch said the Rating Outlook is Stable. ========= H A I T I ========= * HAITI: Stabilization Mission Extended Six Months -------------------------------------------------- The MINUSTAH, an international stabilization mission the United States sponsors for Haiti and which is conducted by the United Nations or UN, has been extended until Feb. 15, 2007, The Washington File reports. As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2006, Kofi Annan, the secretary-general of the United Nations, said at a joint press conference with Haiti's President Rene Preval that he would ask UN member states to extend the MINUSTAH mission by 12 months because there are still much more to be done in Haiti. The UN had organized 7,000 stabilization mission staff for Haiti's elections. An unnamed official in Haiti, however, said that security problems remain, especially those on gun and drug smuggling. The Haitian parliament had complained that MINUSTAH did little to control armed gangs in the capital and other big cities, making President Preval request for special troops and police. According to The File, the six-month extension of the mission will most likely be extended to further periods. The File relates that the UN Security Council voted unanimously on Aug. 15 to extend the mission set to end on that day. Violent crime is still a big problem in Haiti, especially in Port-au-Prince, the UN told The File. * * * Haiti is currently seeking international help to spur economic development in the country. President Rene Preval submitted that the country's poverty, widespread unemployment and the dilapidated state of infrastructures will be alleviated with increased international assistance. =============== H O N D U R A S =============== WARNACO GROUP: Restating 2005 Reports Due to Accounting Errors -------------------------------------------------------------- The Audit Committee of Warnaco Group, Inc.'s Board of Directors has concluded that the company will restate its previously reported financial statements for its fiscal year ended December 31, 2005, and first fiscal quarter ended April 1, 2006. The restatements are required as a result of certain irregularities and errors discovered by the company during the company's second quarter closing review. The irregularities primarily relate to the accounting for certain returns and vendor allowances at its Chaps menswear division. These matters were reported to the company's Audit Committee, which engaged outside counsel, who in turn retained independent forensic accountants, to investigate and report to the Audit Committee. Based on information obtained in that investigation, and also to correct for an error that resulted from the implementation of its new systems infrastructure at its Swimwear Group in the first quarter of fiscal 2006, and certain immaterial errors, the Audit Committee has accepted management's recommendation that the Company restate its financial statements. Warnaco intends to file an amended annual report for the fiscal year ended December 31, 2005, and an amended quarterly report for the quarter ended April 1, 2006, with the US Securities and Exchange Commission. Until these restated financial statements are filed with the SEC, neither the company's consolidated financial statements for the fiscal year ended December 31, 2005, and the related reports of the company's independent registered public accounting firm, nor the company's consolidated financial statements for the first fiscal quarter ended April 1, 2006, should be relied upon. The company has discussed the matters relating to the accounting irregularities and errors with Deloitte & Touche LLP, the company's independent registered public accounting firm and is filing a Form 8-K with the SEC in connection with its restatement decision. Warnaco expects that the effect of the restatement for the fiscal year ended December 31, 2005, will be to reduce reported net income from continuing operations per diluted share from US$1.12 to between approximately US$1.05 and US$1.07 per diluted share, and for the first fiscal quarter ended April 1, 2006 to reduce reported net income per diluted share from US$0.34 to between approximately US$0.28 and US$0.30 per diluted share. Warnaco believes that the matters causing the restatements have been identified and that management has taken appropriate corrective action. However, because the Audit Committee and its advisors have not fully completed their investigation, the company's analysis of the restatement adjustments has not been finalized. Accordingly, the estimated restatement amounts disclosed above remain preliminary, unaudited and subject to adjustment, possibly by amounts that could be material individually or in the aggregate. In addition, it is possible that the company may identify additional new issues which could also impact its previously issued financial statements and the scope of the restatements described in this press release. In the event that new issues requiring restatement arise, it is possible that such additional adjustments could be material individually or in the aggregate. Additionally, in connection with Warnaco's investigation, three employees in the Chaps menswear division, who are not "Executive Officers" as defined by the rules of the SEC, have either resigned or been terminated. "Warnaco is committed to maintaining an internal culture and external reputation for practicing the highest standards in all of our business affairs and has zero tolerance for violations of our Code of Business Conduct and Corporate Ethics," Joe Gromek, Warnaco's President and Chief Executive Officer, said. "We are deeply disappointed by the recent events at our Chaps menswear division and believe, based on information provided to date by the outside counsel to the Audit Committee and forensic accountants, that the inappropriate behavior was confined to that division. We remain confident in the potential of our brands and the prospects for our businesses." Warnaco has evaluated the impact of the restatements of the previously issued financial statements on the company's assessments of the effectiveness of its internal control over financial reporting as of the applicable periods, and concluded that material weaknesses existed in the company's internal control over financial reporting for the second and first fiscal quarters of 2006 and the fiscal year ended December 31, 2005. A material weakness, as defined by the Public Company Accounting Oversight Board, is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Based on this definition, restatement of financial statements in prior filings with the SEC is a strong indicator of the existence of a "material weakness" in the design or operation of internal control over financial reporting. In connection with the restatements, Warnaco is seeking a waiver of certain technical defaults under its credit agreement. Although no assurances can be given, based on conversations with the agent for the lenders, the company is confident that it will obtain the waiver in a timely fashion. About Warnaco Group Headquartered in New York, The Warnaco Group, Inc., is a leading apparel company engaged in the business of designing, marketing and selling intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories under such owned and licensed brands as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm), Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of California(R) and Catalina(R) as well as Chaps(R) sportswear and denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear, Michael Kors(R) swimwear and Calvin Klein(R) men's and women's underwear and sportswear, men's, women's, junior women's and children's jeans and accessories and women's and juniors' swimwear. The company emerged from bankruptcy protection in 2003. Its Authentic Fitness unit is the North American distributor of Speedo swimwear. In 2003 the last two US-based manufacturing facilities were closed and production shifted to Honduras, Mexico, and Asia. In 2006 it acquired the license, wholesale, and retail units for Calvin Klein jeans and accessories in Europe and Asia. * * * Standard & Poor's Ratings Services revised on Aug. 11, 2006, its outlook on The Warnaco Group, Inc.'s ratings to stable from positive. At the same time, the ratings on Warnaco were affirmed, including its 'BB-' corporate credit rating. Total debt outstanding at April 1, 2006, was about USUS$431 million. "The outlook revision follows the company's announcement that it will restate its financial statements for the fiscal year ended December 2005 and the first quarter of 2006 ended April 1, 2006, as a result of certain irregularities and errors related to its accounting for returns and vendor allowances at its Chaps menswear division," said Standard & Poor's credit analyst Susan H. Ding. WARNACO: Net Revenues Up 20.5% to US$451.6M in Second Quarter ------------------------------------------------------------- The Warnaco Group, Inc., reported results for the second quarter ended July 1, 2006. Highlights for the Second Quarter of Fiscal 2006: -- Net revenues increased 20.5% to US$451.6 million, compared with US$374.7 million in the second quarter of fiscal 2005; -- Gross profit margin was 35.1% of net revenues, compared with 30.2% in the second quarter of fiscal 2005; -- Operating income declined to US$14.0 million, compared with US$15.6 million in the second quarter of fiscal 2005; and -- Net income was US$3.4 million, or US$0.07 per diluted share, compared with US$6.3 million, or US$0.14 per diluted share in the second quarter of fiscal 2005. Warnaco notes that fiscal 2006 second quarter results include the operations of the Calvin Klein Jeans and related businesses in Europe and Asia or the CKJEA Business, which were acquired on January 31, 2006. Excluding the CKJEA Business, net revenues increased 3.5% to US$387.9 million, compared with US$374.7 million in the prior year quarter, and operating income was US$15.0 million compared with US$15.6 million in the prior year quarter. For the second quarter, net revenues from the CKJEA Business were US$63.7 million and operating losses were US$1.0 million (including US$2.6 million of amortization expense). "Contributions from certain pre-acquisition businesses and a smaller than expected loss at the CKJEA Business resulted in the better than anticipated second quarter results," said Joe Gromek, Warnaco's President and Chief Executive Officer. "The Intimate Apparel Group, led by Calvin Klein Underwear and Warner's, continued its positive momentum from the first quarter and delivered significant increases in gross profit and operating income. Speedo also delivered strong sales growth and substantial improvements in profitability. Unfortunately, this positive performance was substantially offset by the poor performance of the Sportswear Group. Significantly higher dilution at Chaps due to higher markdown allowances compared withthe prior year period and the shift in timing of certain membership club sales negatively affected the Sportswear segment." Mr. Gromek continued, "We continue to believe the development of our global wholesale and retail platform positions us to achieve our long term revenue and operating income targets. Additionally, with the acquisition of the CKJEA Business, which is surpassing our performance expectations, we believe our international businesses, which generate operating margins well above the Company average, will account for approximately 40% of our fiscal 2006 revenues." Restatement Warnaco will be restating its previously reported financial statements for its fiscal year ended December 31, 2005, and first fiscal quarter ended April 1, 2006. The restatements are required as a result of certain irregularities discovered by the company during its second quarter closing review and certain other errors. The irregularities primarily relate to the accounting for certain returns and customer allowances at the company's Chaps menswear division. These matters were reported to the company's Audit Committee, which engaged outside counsel, who in turn retained independent forensic accountants, to investigate and report to the Audit Committee. Based on information obtained in that investigation, and also to correct for an error that resulted from the implementation of Warnaco's new systems infrastructure at the Swimwear Group in the first quarter of fiscal 2006, and certain immaterial errors, the Audit Committee accepted management's recommendation that the Company restate its financial statements. "We are deeply disappointed by what occurred at our Chaps menswear division," concluded Mr. Gromek. "However, the investigation, which is now substantially complete, did not reveal any inappropriate activity outside of that division. In spite of what happened, Chaps remains an important brand in our portfolio with strong brand equity and consumer loyalty and we expect Chaps to contribute to Warnaco's profitability in fiscal 2006 and beyond." Second Quarter Operating Highlights Second quarter net revenues increased 20.5% to US$451.6 million, including US$63.7 million in revenues from the CKJEA Business. Intimate Apparel Group net revenues increased 6.9% compared with the prior year, reflecting continued positive consumer response to Calvin Klein Underwear and Warner's. Swimwear Group net revenues increased 17.6% compared with the prior year period driven by Speedo, Michael Kors and Calvin Klein. Sportswear Group net revenues (excluding the CKJEA Business) declined 13.4%, reflecting among other things the significantly higher dilution at Chaps, the timing shift of certain sales to membership clubs to the second half of the year and a decline in off-price sales year over year. The increase in net revenues for the second quarter of fiscal 2006 includes approximately US$2.5 million related to the translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar relative to the second quarter of fiscal 2005. Gross profit was US$158.4 million, or 35.1% of net revenues, including US$35.2 million in gross profit from the CKJEA Business, compared withUS$113.0 million, or 30.2% of net revenues, for the second quarter of fiscal 2005. The 490 basis point improvement in gross profit margin was the result of (i) the strong gross profit margins of the acquired CKJEA Business, (ii) improvements in Swimwear gross profit margins, and (iii) improved product mix and more full price sales from the Intimate Apparel Group partially offset by declines in Chaps gross profit margin due to an incremental US$7.5 million in markdown allowances compared with the prior year period. Gross profit for the second quarter of fiscal 2006 includes approximately US$1.0 million related to the translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar relative to the second quarter of fiscal 2005. Selling, general and administrative expenses were US$140.4 million, or 31.1% of net revenues, compared withUS$95.3 million, or 25.4% of net revenues, for the prior year quarter. The increase in SG&A included: (i) US$33.7 million from the CKJEA Business, (ii) US$6.3 million of incremental Swimwear Group expense primarily related to continued investment in Ocean Pacific brands and increased marketing and severance expense, (iii) US$5.1 million resulting from an increased percentage of the Company's revenues generated from higher SG&A businesses, including international and retail; and (iv) US$1.6 million of incremental corporate information technology expenses primarily associated with the implementation of the new systems infrastructure. SG&A was negatively affected by approximately US$0.4 million related to the translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar relative to the second quarter of fiscal 2005. Amortization of intangible assets was US$4.0 million, compared withUS$1.1 million in the prior year period, primarily due to an increase of US$2.6 million in intangible assets associated with the acquisition of the CKJEA Business. Operating income for the second quarter of fiscal 2006 was US$14.0 million, including a loss of US$1.0 million from the CKJEA Business, compared withUS$15.6 million in the prior year period. The strong operating profits from the Intimate Apparel Group were offset by disappointing results in the Sportswear Group, the seasonal weakness of the CKJEA Business and higher expenses in the Swimwear Group. Operating income for the second quarter of fiscal 2006 includes approximately US$0.6 million related to the translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar relative to the second quarter of fiscal 2005. Other income was US$0.8 million, compared with a loss of US$0.9 million in the prior year quarter related primarily to foreign exchange rate gains on the current portion of inter-company loans denominated in foreign currencies. Net interest expense increased to US$9.4 million compared withUS$4.5 million in the prior year period. The US$4.9 million increase is primarily the result of incremental indebtedness incurred in connection with the acquisition of the CKJEA Business. Net income was US$3.4 million, or US$0.07 per diluted share, compared withUS$6.3 million, or US$0.14 per diluted share, for the second quarter of fiscal 2005, which reflects the continued strength in Intimate Apparel substantially offset by the disappointing performance of the Sportswear Group. Balance Sheet Highlights as of July 1, 2006 Cash and cash equivalents were US$138.4 million, compared with US$153.9 million of cash and cash equivalents at July 2, 2005, notwithstanding the approximately US$70.8 million of cash (net of acquired cash) used in connection with the acquisition of the CKJEA Business on January 31, 2006. In addition, during the quarter Warnaco used approximately US$12.2 million of cash to repurchase 675,000 shares of common stock under the company's previously announced share repurchase program, at an average price of US$18.05. Approximately 2.3 million shares remain authorized for repurchase under the share repurchase program. The share repurchase program may be modified or terminated by the company's Board of Directors at any time. Accounts receivable were US$278.7 million, up from US$204.2 million at July 2, 2005. Accounts receivable related to the CKJEA Business were US$55.5 million. Receivables, excluding the CKJEA Business, were up 9.3% in the quarter. Net inventories were US$311.0 million, up from US$277.3 million at July 2, 2005. Inventories at July 1, 2006 include US$44.6 million of inventory of the CKJEA Business and a US$6.5 million increase in Swimwear inventory, for which the company believes it is appropriately reserved. Excluding the CKJEA Business, inventories were down 3.9%, which reflects the company's continued discipline related to planning and inventory management. Fiscal 2006 Outlook Larry Rutkowski, Warnaco's Chief Financial Officer commented, "Although the restatement we announced on August 8, 2006 will lower fiscal 2005 results, our forward guidance continues to be based upon fiscal 2005 results prior to giving effect to the restatement. For the year we continue to expect our pre- acquisition business revenue growth to be in the low single digits. In addition, for our pre-acquisition businesses, we continue to expect at least a 100 basis point improvement in gross margin percentage and mid single digit percentage improvement in the operating margin percentage over the prior year (assuming minimal pension expense in fiscal 2006)." Mr. Rutkowski concluded, "Overall, for the company (including the acquired CKJEA Business), we continue to expect revenue growth in 2006 to be at least in the low 20 percent range; mid single digit percentage improvement in the operating margin percentage over the prior year (assuming minimal pension expense in fiscal 2006); and that the acquisition of the CKJEA Business will be accretive to Warnaco's 2006 earnings per share." Subsequent Events In August 2006, Warnaco received a favorable ruling from the Netherlands taxing authority relating to the company's European operations. The ruling, which is retroactive to the beginning of 2006, is expected to have a positive impact on the company's effective tax rate for fiscal 2006 and beyond. About Warnaco Group Headquartered in New York, The Warnaco Group, Inc., is a leading apparel company engaged in the business of designing, marketing and selling intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories under such owned and licensed brands as Warner's(R), Olga(R), Lejaby(R), Body Nancy Ganz(tm), Speedo(R), Anne Cole(R), Op(R), Ocean Pacific(R), Cole of California(R) and Catalina(R) as well as Chaps(R) sportswear and denim, J. Lo by Jennifer Lopez(R) lingerie, Nautica(R) swimwear, Michael Kors(R) swimwear and Calvin Klein(R) men's and women's underwear and sportswear, men's, women's, junior women's and children's jeans and accessories and women's and juniors' swimwear. The company emerged from bankruptcy protection in 2003. Its Authentic Fitness unit is the North American distributor of Speedo swimwear. In 2003 the last two US-based manufacturing facilities were closed and production shifted to Honduras, Mexico, and Asia. In 2006 it acquired the license, wholesale, and retail units for Calvin Klein jeans and accessories in Europe and Asia. * * * Standard & Poor's Ratings Services revised on Aug. 11, 2006, its outlook on The Warnaco Group, Inc.'s ratings to stable from positive. At the same time, the ratings on Warnaco were affirmed, including its 'BB-' corporate credit rating. Total debt outstanding at April 1, 2006, was about US$431 million. "The outlook revision follows the company's announcement that it will restate its financial statements for the fiscal year ended December 2005 and the first quarter of 2006 ended April 1, 2006, as a result of certain irregularities and errors related to its accounting for returns and vendor allowances at its Chaps menswear division," said Standard & Poor's credit analyst Susan H. Ding. * HONDURAS: Introducing Organic Banana Planting in Olancho ---------------------------------------------------------- Honduras' Ministry of Agriculture and livestock presented a project for planting of organic bananas in the province of Olancho, La Tribuna relates. Among the participants were farmers and consultants from Chiquita Brands International who explained the potential benefits of organic banana planting, according to the same report. Agriculture ministry representative Hernandez Amador noted that Olancho's mountainous terrain makes it suit for the type of cultivation used in organic planting. Mr. Amador underscored that the ministry has already undertaken a project to plant oriental vegetables, which has a high international demand right now, La Tribuna says. The project involves planting on 100 to 150 hectares of land at a cost of US$25,000 US per hectare, La Tribuna says. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date ------ ----------- Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 * HONDURAS: Joins Third Round of Free Trade Talks ------------------------------------------------- Honduras participated on Tuesday in the third round of Free Trade Treaty or FTT talks with Colombia, El Salvador and Guatemala at Plaza Mayor Convention Center of Medellin, Colombia, Prensa Latina reports. Prensa Latina relates that the talks were aimed at reaching an FTT among the countries. The initiative wants to have a stable access, preferential and permanent to the main markets of the world. This new challenge obeys to a long-time commercial policy of Colombia and its government, Eduardo Munoz, the nation's foreign trade vice minister, told Prensa Latina. Vice Minister Munoz mentioned to Prensa Latina the closeness of the region in culture, language and other factors for a commercial integration. He also said that Colombian entrepreneurs have a significant presence in the Central American market, which has been seeking for new commercial partners. Vice Minister Munoz told Prensa Latina, "If we get that preferential access we will be able to consolidate the Colombian presence in the Central American market." Due to "air and sea interconnection" problems between Colombia has with the rest of Central America, the two parties' aircraft authorities will hold a meeting on Thursday to study possible measures, Prensa Latina states, citing the vice minister. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date ------ ----------- Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 ============= J A M A I C A ============= DELTA AIR: Posts US$2.2 Billion Net Loss in Second Quarter 2006 --------------------------------------------------------------- Delta Air Lines reported a US$2.2 billion loss in the second quarter of 2006. Excluding reorganization items, second quarter net income was US$175 million; Delta continued its substantial restructuring by: -- reducing employment costs through a new comprehensive agreement with its pilots and a reduction in corporate overhead, -- restructuring its route network through significant international growth, and -- lowering aircraft costs through: * negotiations, lease * rejections, and * aircraft returns. As of June 30, 2006, Delta had US$4.0 billion in cash, cash equivalents and short-term investments, of which US$2.9 billion was unrestricted. Delta's US$2.2 billion net loss in the second quarter of 2006 was greater than its US$382 million net loss in the second quarter of 2005. Net income of Delta was US$175 million in the second quarter of 2006, a US$479 million improvement compared to the US$304 million net loss excluding special items in the second quarter of 2005. Operating margin for the quarter was 7.9%, a 10.9-point increase over the same period in the prior year. Delta also filed its Monthly Operating Report for June 2006 with the U.S. Bankruptcy Court. In that report, the company reported a net loss of US$2.2 billion for the month. Excluding reorganization items, June 2006 net income was US$145 million. Gerald Grinstein, Delta's chief executive officer, said, "Delta has made important progress toward our restructuring goals and remains on track to exit bankruptcy in the first half of 2007 -- accomplishments that would not have been possible without the participation and commitment of all Delta people. With more work ahead of us to return to financial health, continued execution of our plan -- including improving our product and providing superior service to our customers -- will be crucially important going into the industry's less robust travel season." Second quarter operating revenues increased by US$406 million or 9.6% compared to the second quarter of 2005, despite a 6.8% decrease in capacity. Passenger unit revenues increased 17% compared to the June 2005 quarter as a result of a 15.0% improvement in yield. These results reflect the positive impact of Delta's strategic initiatives, including the restructuring of its route network and fare increases, which reflect strong passenger demand and capacity reductions in the airline industry. Passenger load factor for the second quarter was 79.7%, a 1.4-point increase as compared to the second quarter of 2005. During the June quarter, Delta achieved its highest daily load factor on record -- 94.4% on June 30. Operating expenses for the second quarter decreased 2.1% from the corresponding period in the prior year, despite a fuel expense increase of US$313 million attributable to higher fuel prices. Fuel prices rose 30% year over year to US$2.08 per gallon, driving a 5% increase in consolidated unit costs. However, as a result of the cost reduction initiatives included in Delta's restructuring plan, mainline unit costs excluding fuel and prior year special items decreased 3.3%. In September 2005, Delta announced a comprehensive restructuring plan intended to deliver an additional US$3 billion in annual financial benefits through revenue improvements and cost reductions by the end of 2007. During the June 2006 quarter, Delta continued its restructuring progress by: * Implementing a new comprehensive agreement with the Air Line Pilots Association (ALPA), representing Delta pilots, which provides the company with approximately US$280 million in average annual pilot labor cost savings through a combination of changes to pay, benefits and work rules. After ratification by the pilots and approval by the Bankruptcy Court, the agreement became effective June 1, 2006. The Pension Benefit Guaranty Corporation (PBGC) has appealed to the United States District Court the Bankruptcy Court's order authorizing Delta to enter into the new agreement with ALPA. In the agreement, ALPA agreed to not oppose termination of the defined benefit pension plan for pilots (Pilot Plan). On June 19, a notice of intent to terminate the Pilot Plan was filed with the PBGC and, on Aug. 4, Delta filed a motion with the Bankruptcy Court to seek a determination that the company satisfies the financial requirements for a distress termination of the Pilot Plan; * Continuing the largest international expansion in Delta's history, which resulted in an international capacity increase of 21.5% compared to the June 2005 quarter. Delta has launched 11 new transatlantic routes since March 2006, new service between its Atlanta hub and Copenhagen, Athens and Venice, and now offers more service between the United States and destinations across Europe, India and Israel than any other global carrier; * Reducing aircraft ownership costs by negotiating more favorable lease terms and eliminating older, less efficient aircraft from its fleet. On June 30, 2006, Delta had 457 mainline aircraft in its fleet, a reduction of 65 aircraft from June 30, 2005; * Completing a US$200 million initiative to streamline corporate structure and improve Delta's productivity and effectiveness, which involved the elimination of more than 1,000 management positions. Edward H. Bastian, Delta's executive vice president and chief financial officer, said, "Delta's second quarter results continue to reflect both the solid progress we are making in our restructuring and the substantial challenges we are facing from high fuel prices. We are aggressively restructuring our business, and our improving financial results are proof that our plan is taking hold. Despite the more than US$300 million impact of higher fuel prices, Delta produced its first quarterly net profit, excluding reorganization or special items, since December 2000." At June 30, 2006, the company had US$4.0 billion in cash, cash equivalents and short-term investments, of which US$2.9 billion was unrestricted. Capital expenditures during the June 2006 quarter were US$73 million. At June 30, 2006, Delta was in compliance with all of the financial covenants in its post- petition financing arrangements. Delta received authorization from the Bankruptcy Court, with the support of the unsecured creditors' committee in its Chapter 11 proceedings, to enter into fuel hedging contracts within certain limits. For the June 2006 quarter, Delta hedged approximately 34% of its fuel consumption, resulting in a gain of US$2 million. As of July 31, 2006, Delta had hedged approximately 49% of its planned fuel consumption for the September 2006 quarter at an average price of US$2.13 per gallon. In the second quarter of 2006, Delta recorded US$2.4 billion in non-cash charges for reorganization items. These items primarily relate to: * US$2.1 billion charge for the allowed general, unsecured pre-petition claim in conjunction with the pilot collective bargaining agreement; * US$284 million charge primarily reflecting estimated pre- petition bankruptcy claims from restructuring the financing arrangements of 16 aircraft, the rejection of 14 aircraft leases and the return to the lessor of one aircraft; In the second quarter of 2005, Delta recorded US$78 million in charges for special items, including: -- US$96 million charge associated with pension and related items, and -- US$18 million benefit from a net reduction in Delta's valuation allowance. Headquartered in Atlanta, Georgia, Delta Air Lines -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta Air offers customers more weekly flights between the United States and destinations across Europe, India and Israel than any other global airline, including service on 11 new transatlantic routes launched since March. Delta Air also is a major carrier to Mexico, South and Central America and the Caribbean, with nearly 40 new routes announced in the last year. The Company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. =========== M E X I C O =========== GRUPO GIGANTE: S&P Says BB Ratings Reflect High Debt Leverage ------------------------------------------------------------- Grupo Gigante S.A. de C.V. currently holds these ratings by Standard & Poor's: -- long-term foreign issuer credit rating: BB; and -- long-term local issuer credit rating: BB. The ratings on supermarket chain Grupo Gigante S.A. de C.V. reflect the company's relatively high debt leverage, the challenges the company will face with its new business strategies, the risks derived from the increased competition it's facing in most of its business formats, and the correlation of its sales with economic cycles. Balancing this position are the steps taken by the company to improve operating efficiencies and margins, and its position as one of the top players in the highly competitive Mexican supermarket industry. Standard & Poor's Ratings Services expects 2006 to be a year of transition for Gigante, during which the company will continue working on its recent shift to everyday-low-price strategy while focusing on profitable growth, even if this results in a lower market share and additional store closings (it closed 14 in 2004 and 16 in 2005, and it is in the process of closing 17 in 2006). The rating is predicated on an expected gradual and sustained improvement in the company's financial and business profiles. Such improvements will be determined by the consumers' acceptance of the company's pricing strategy and its new image. The company must also successfully implement its investments in technology, in store renovations, and in distribution centers. And it should command more bargaining power with several of its suppliers and benefit from its participation in Sinergia, the joint purchasing company it operates with peers Controladora Comercial Mexicana S.A. de C.V. (BBB-/Stable/--) and Organizacion Soriana S.A. de C.V. The supermarket industry is highly competitive in Mexico, and the four main players control approximately 80% of the market, Wal-Mart de Mexico aka Walmex being the largest. Gigante lags its competitors mainly because of its more aggressive financial profile and weaker operating efficiencies. Its same-store sales indicators have fallen well below the average for the sector, as well as below the top players' results. The company reported a decline of 6.4% during 2005 and 0.4% during second-quarter 2006, while Mexico's national retail association reported a decrease of 2.4% and growth of 6.3% for those periods, respectively (the association's figures exclude Walmex). In addition, Mexico has a large and relatively young population base, while numerous small and inefficient mom-and-pop stores and a large informal market comprise a high percentage of the industry. These factors combine for a high growth potential for the big and efficient operators, whose current large investments could represent further pressure for Gigante in the mid- and long time frame. The company's weak results mainly derive from the difficult operational and financial situation the company has been facing in the past three years. In 2005, the company's problems were the result of a new pricing strategy and its complicated implementation of an IT platform, along with high expenses due to store closings and remodeling, and increased competition. These factors led to deterioration in the company's financial measures. For the 12 months ended June 30, 2006, operating-lease adjusted (OLA) EBITDA interest coverage was 2.1x (down from 2.5x the previous year), while the total debt-to-EBITDA ratio was 2.8x (an increase from 2.4x), and the funds from operations-to- total debt ratio was 16.3% (a decline from 17.1%). The company's OLA EBITDA margin, between 5% and 6% during the past four years, is expected to be in the higher end of this range when the company begins to see positive results from its new operational strategies. Nevertheless, the figure will continue to underperform other companies' measures. Gigante's joint ventures with Office Depot and Radio Shack are its most profitable businesses, with an estimated EBITDA margin of more than double those of the supermarket operations. Founded in 1962, Gigante is one of the most recognized supermarket names in Mexico. With an estimated 10% market share and revenues of US$2.9 billion for the 12 months ended June 2006, the company owns Mexico's fourth-largest chain of supermarkets in terms of revenues, and it has the second-largest number of supermarket outlets. The main retail brands are Gigante, Bodega Gigante, Super Gigante, and Gigante USA, which target different segments of the retail market. The company owns 271 self-service stores in Mexico that sell groceries, perishables, clothing, and general merchandise, as well as smaller retailing operations in Los Angeles, Calif. (the company's nine U.S. stores are not profitable). Gigante's self- service operations contribute most of its total sales and more than half of its consolidated EBITDA. About 50% of total sales are concentrated in the Mexico City metropolitan area and in Mexico's central region, where approximately 60% of the Mexican population lives. The company has a valuable real estate portfolio with the stores it owns, though these represent less than half of its total supermarket store base. Gigante also enjoys diverse revenues and cash flows from two joint ventures with highly recognized U.S. retail businesses (with Radio Shack, which has 132 stores in Mexico, and with Office Depot, which has 120 stores in Mexico and Central America). The company also operates a family-style restaurant chain under the Toks brand name, which has 58 locations and 12,086 seats. Although 95% of the company's sales are generated in Mexico, Gigante's international operations provide it with some diversification and experience in other retail environments, even if they do not offset risks associated with debt denominated in foreign currency. In April 2006, the company refinanced all its debt through a US$260 million, 8.75% 10-year Regulation S/Rule 144A bond issuance to free up cash for store remodeling, since the previous loan started amortizing in 2006, was backed by a mortgage guarantee, and had very restrictive covenants. The new notes are unsecured and do not include guarantees from Gigante USA, Office Depot, and Radio Shack operations. Due to the mentioned notes issuance, the company's total debt is now fully dollar-denominated. The rating takes into consideration that an efficient hedging strategy will be in place to reduce the risk from foreign-exchange exposure. Liquidity The company's liquidity is adequate. Standard & Poor's expects Gigante to continue funding its capital spending plans (which the rating agency expects to be more than US$100 million per year) mostly through internally generated cash. Large expansions and investments in the past have been funded through a mix of cash and debt. As of June 2006, Gigante had US$36 million in cash and cash equivalents, with some available uncommitted lines of credit, and its OLA EBITDA is estimated to be US$170 million for year-end 2006. By contrast, the company faces only US$1 million in short-term debt, only US$12.5 million of maturing debt in 2007, and US$13.4 million in 2008. Gigante has constituted a reserve of approximately US$18 million to cover a negative ruling of a legal proceeding concerning the purchase of a subsidiary. Outlook The stable outlook reflects our expectation that Gigante will be able to maintain its business position as long as its operating improvements provide adequate debt coverage and its debt remains at current levels. The rating is currently constrained, however, by the challenges the company will face during 2006 as it continues with its recent pricing strategy change and implements new operational and technological initiatives to increase efficiency. The company also faces intense competition from a diverse array of sector players. Hence, a positive rating action is not foreseen in the medium term. If the company fails to provide positive results after the transition period or if its financial profile deteriorates further, the ratings would be pressured downward. GRUPO MEXICO: New Projects May Raise Output by 60% in Four Years ---------------------------------------------------------------- Grupo Mexico SA de CV told Reuters on Tuesday that new mining projects in Peru and Mexico could increase the firm's copper output by 60% or 470,000 tons in four years. Among these projects are: * Peru: -- Tia Maria, and -- Los Chancas; and * northern Mexico: El Arco. Grupo Mexico also told Reuters that the new projects would raise its molybdenum production by 20 million pounds, also in four years. The Tia Maria project should take around two years to develop, Reuters relates, citing Grupo Mexico. The company said that once the project is finished, the new output -- added to the expansions underway in the Cananea -- should boost the company's copper production by 110,000 tons yearly. Grupo Mexico told Reuters that it hoped to conclude studies on the Los Chancas and El Arco projects in November this year. "The development of all these projects could add 470,000 extra tonnes of copper and 20 million lbs extra of molybdenum to the company's annual production in approximately four years," Grupo Mexico said in a statement. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.: -- foreign currency long-term debt, BB; and -- local currency long-term debt, BB. MERIDIAN AUTOMOTIVE: To File a Revised Plan of Reorganization ------------------------------------------------------------- Meridian Automotive Systems, Inc., has decided to amend its current Plan of Reorganization. In light of the difficult current automotive environment the company has concluded that it should emerge from Chapter 11 with less debt and increased liquidity. Meridian is currently discussing the terms of a revised plan of reorganization with its major creditor constituencies as well as the terms of exit financing with certain lenders. Meridian will continue the confirmation hearing on its plan of reorganization, file an amended disclosure statement and plan of reorganization with the Bankruptcy Court and re-solicit its creditors. The company currently expects to close on the exit financing and have the revised plan of reorganization become effective near the end of October 2006. Richard E. Newsted, Meridian's President and CEO, said, "Given the continued challenges within the industry, while we are focused on exiting Chapter 11 as quickly as practical, the short delay in our emergence will be more than offset by the positive impact of a post-confirmation balance sheet with less debt and increased liquidity. These are two very positive factors that should generate increased customer, supplier and employee confidence and contribute to our long-term success in this industry." Headquartered in Dearborn, Mich., Meridian Automotive Systems, Inc. -- http://www.meridianautosystems.com/-- supplies technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers. The Company and its debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. The Committee also hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary proceeding against Meridian's First Lien Lenders and Second Lien Lenders to invalidate their liens. When the Debtors filed for protection from their creditors, they listed US$530 million in total assets and approximately US$815 million in total liabilities. SONIC CORP: Launches US$560 Million "Dutch Auction" Tender Offer ---------------------------------------------------------------- Sonic Corp. has commenced its modified "Dutch Auction" tender offer. In the tender offer, Sonic is offering to purchase up to 25,454,545 shares of its common stock at a price per share not less than US$19.50 and not greater than US$22.00, for a maximum aggregate purchase price of US$560 million. The high end of this range represents an 11.5% premium to the closing price for the company's common stock on August 11, 2006. The tender offer will expire at 5:00 p.m., Eastern Time, on Friday, September 22, 2006, unless extended. The number of shares proposed to be purchased in the tender offer represents approximately 30% percent of Sonic's currently outstanding common stock. In the tender offer, Sonic's stockholders will have the opportunity to tender some or all of their shares at a price within the US$19.50 to US$22.00 per share range. Based on the number of shares tendered and the prices specified by the tendering stockholders, Sonic will determine the purchase price per share by selecting the lowest per share price within the range that will enable it to buy 25,454,545 shares of stock, or fewer shares if a lesser number is properly tendered. All shares accepted in the tender offer will be purchased at the same price per share even if tendered at a lower price. If stockholders tender more than 25,454,545 shares of stock at or below the purchase price per share, Sonic will purchase the shares tendered by those stockholders on a pro rata basis, as specified in the offer to purchase that is being distributed to stockholders. Sonic's intent is to purchase up to US$560 million of common stock in the tender offer. In the event the final purchase price is less than the maximum price of US$22.00 per share and more than 25,454,545 shares are tendered in the tender offer at or below the purchase price, Sonic intends to exercise its right to purchase up to an additional 2% of its outstanding shares without extending the tender offer so that it may repurchase up to US$560 million of common stock. The tender offer is not contingent upon a minimum number of shares being tendered. It is subject to a number of other terms and conditions, including the receipt of financing as noted below, all of which are specified in the offer to purchase. Sonic's directors and executive officers have advised Sonic that they do not intend to tender any of their shares in the tender offer. Sonic has signed a commitment letter dated August 10, 2006, with Banc of America Securities and Lehman Brothers to arrange a new senior secured credit facility, which is expected to consist of a US$100 million, five-year revolving credit facility and a US$675 million, seven-year term loan facility. The new senior secured credit facility will be used to fund the purchase of shares in the tender offer, refinance certain of Sonic's existing debt and pay related fees and expenses. Under the commitment letter, Banc of America Securities and Lehman Brothers will act as joint lead arrangers for the new senior secured credit facilities. Lehman Commercial Paper Inc. will act as sole and exclusive syndication agent and will syndicate such facilities on a best efforts basis. In addition, Banc of America Securities and Lehman Brothers have committed, subject to the terms and conditions of the commitment letter, to provide US$50 million and US$20 million, respectively, of the new senior secured credit facilities. The consummation of the tender offer is conditioned upon receipt of this financing. Banc of America Securities and Lehman Brothers have been retained to act as dealer managers for the tender offer. Banc of America Securities also has been retained to act as the company's financial advisor for the above- mentioned transactions. After completion of the tender offer, subject to market conditions, Sonic may pursue a refinancing of its new senior secured credit facility with a securitized transaction and has engaged Lehman Brothers as its sole structuring advisor to evaluate the securitized transaction. The information agent for the tender offer is Georgeson Inc. and the depository is UMB Bank, N.A. The offer to purchase, letter of transmittal and related documents will be distributed to stockholders promptly. Stockholders with questions or who would like additional copies of the tender offer documents may call the information agent at (866) 295-3782. Banks and brokers may call (212) 440-9800. Headquartered in Oklahoma City, Oklahoma, Sonic Corp. engages in the operation and franchising of a chain of quick-service drive- ins in the United States and Mexico. As of August 31, 2005, Sonic Corp. had 3,039 Sonic Drive-Ins, including 574 Partner Drive-Ins and 2,465 Franchise Drive-Ins. * * * Standard & Poor's Ratings Services assigned on Aug. 14, 2006, its 'BB-' corporate credit rating to Oklahoma City, Okla.-based quick- service restaurant operator Sonic Corp. The outlook is stable. Standard & Poor's also assigned a 'BB-' rating to the company's proposed US$100 million secured revolving credit facility maturing in 2011 and to its US$675 million secured term loan B maturing in 2013. A recovery rating of '2' was assigned to the credit facilities, indicating the expectation for substantial recovery of principal in the event of a payment default. ================= N I C A R A G U A ================= * NICARAGUA: Hydroelectric Projects Portfolio Attracts 10 Firms --------------------------------------------------------------- About 10 firms have asked CNE, Nicaragua's national energy commission, for additional information on a hydroelectric projects portfolio, Business News Americas reports, citing an official of CNE. The CNE official told BNamericas that the agency disclosed in earlier in August 12 projects at different stages of development to around 20 local and international firms -- including Italian power firm Enel and companies from Denmark, Norway and Spain. BNamericas notes that out of the 10 companies that requested for more details on the projects, two have collected the necessary forms from energy regulator INE to conduct remaining studies. The next step -- if the projects proceed -- would be for firms to obtain environmental and water use right permits and generation licenses, BNamericas states. * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 =========== P A N A M A =========== BANCO LATINAMERICANO: Posts US$8.9MM Second Quarter Net Income -------------------------------------------------------------- Banco Latinoamericano de Exportaciones, S.A., aka Bladex, disclosed its results for the second quarter ended June 30, 2006. Financial Highlights -- During the quarter, the Bank's credit portfolio grew by 4%. Compared with June 30, 2005, the portfolio has grown 27%, while disbursements have grown by 62%. -- In the second quarter, Net Interest Income rose by 29% to US$14.9 million. Year to date, Net Interest Income has increased by US$5.4 million, or 26%, compared with the same period in 2005. -- During the first six months of 2006, Net Interest Income on the restructured portfolio amounted to 5% of total Net Interest Income, compared with 23% a year before. -- Operating Income for the second quarter totaled US$7.3 million, US$1.9 million, or 21%, below the level reported in the first quarter, due to net trading losses of US$2.4 million in the second quarter. Year to date, Operating Income was US$16.5 million, US$3.8 million, or 30%, above the level of the previous year. -- Driven by lower reversals of provisions for credit losses, Net Income for the second quarter totaled US$8.9 million (US$7.7 million, or 46%, below the results of the first quarter), and US$25.6 million year to date (US$18.3 million, or 42%, below the same period in 2005). -- Subsequent to the close of the quarter, the Bank completed its US$50 million stock buyback program. Jaime Rivera, Chief Executive Officer of Bladex, commented on the quarter's results: "The results of the second quarter are the strongest indication yet of the established nature of the transformation of our business. When compared to a year ago, disbursements have increased 62%, the portfolio has grown 27%, operating income is 30% higher, and our efficiency ratios are stronger. During the second quarter, we saw pricing continue to improve as a result of markets moving in the Bank's favor and the diversification of our business into the corporate segment, which in June accounted for 56% of revenues, compared to 33% in June 2005. "The underlying dynamics of our pristine commercial portfolio quality remain stable -- 73% of our exposure is trade finance in nature, with 80% of the total credit portfolio due to mature within one year. No interest or principal payments are past due. "Financially, the second quarter was a challenging one for our Treasury where, after two quarters of strong securities gains, unusually volatile markets resulted in trading losses that took some off the luster of the quarter's operating results. The volatility in the market, however, allowed us to complete our stock buyback program under very favorable terms for the Bank. "On the non-financial front, we obtained the regulatory approvals necessary to move forward with our Clavex's initiative, and successfully went live with our new technology platform. "Our work for the remainder of the year will continue to focus on translating our progress to the bottom line, as we move forward with disciplined implementation of our strategic plan to achieve steady, quality growth through a wider array of trade finance services." About Bladex Headquartered in Panama City, Panama, Banco Latinoamericano de Exportaciones, S.A. aka Bladex -- http://www.bladex.com-- is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to promote trade finance in the Region. The bank's shareholders include central banks and state- owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through December 31, 2005, Bladex had disbursed accumulated credits of over US$135 billion. * * * As reported on April 7, 2006, Moody's affirmed these ratings for Bladex: -- Bank Financial Strength Rating: D-minus, change to positive outlook from stable; -- Long Term Foreign Currency Deposit Rating: Baa3, with stable outlook; -- Short Term Foreign Currency Deposit Rating: Prime-3; -- Foreign Currency Senior Unsecured Rating: Baa3, with stable outlook; and -- Foreign Currency Issuer Rating: Baa3, with stable outlook. * PANAMA: OKs Framework Agreement of Cooperation with Venezuela --------------------------------------------------------------- The Council of Ministers of Panama has ratified the Framework Agreement of Cooperation with Venezuela, Inside Costa Rica reports. The report says that the Framework Agreement was signed on June 22 to improve bilateral relations. A release published on Wednesday states that the agreement establishes a performance between Venezuela and Panama aimed at social development to: -- fight poverty, -- foster trade and investments, and -- promote exports, energy, environment and natural resources." Several agreements, particularly those on energy, were signed during the visit of Venezuela's President Hugo Chavez to Panama, Inside Costa Rica relates. Among them are: -- a protocol for a mechanism of consultation and political agreement Venezuelan Foreign Minister Ali Rodriguez and Panamanian First Vice President and Foreign Minister Samuel Lewis Navarro signed; -- energy cooperation; -- management and storage of hydrocarbons; -- supply and refining of oil for Panama; and -- transport and management of natural gas. * * * Fitch Ratings assigned these ratings on Panama: Rating Rating Date ------ ----------- Country Ceiling BBB Apr. 8, 2005 Long Term IDR BB+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 =============== P A R A G U A Y =============== * PARAGUAY: Will Discuss Itaipu Dam Debt Payment with Brazil ------------------------------------------------------------ Silas Rondeau, the mines and energy minister of Brazil told Dow Jones Newswires that the nation's ministers met with Paraguayan counterparts on Aug. 17 to discuss debt payments on the construction of the Itaipu hydroelectric dam that the two nations jointly owned. Dow Jones relates that it was the second session held regarding the proposal to abolish a clause that says the repayment of the debt would depend on US inflation. The Itaipu dam has a generating capacity of 12,600 megawatts, Dow Jones reports. The dam's construction -- completed in 1983 -- was mainly funded by the Brazilian government, leaving a US$19 billion debt. Paraguay's repayments on the debt were based on US inflation during renegotiations to the debt in 1996. Dow Jones notes that the Brazilian government refuses to change the terms of the accord but is willing to avoid an argument with Paraguay. Brazil already has conflict with Bolivia regarding the former's state firm Petroleo Brasileiro SA operations in the latter. Bolivia's President Evo Morales had implemented a nationalization of the hydrocarbons sector in May, insisting for a renewal of contracts on prices for gas shipped to Brazil, Dow Jones states. * * * Fitch Ratings assigned these ratings on Panama: Rating Rating Date ------ ----------- Country Ceiling BBB Apr. 8, 2005 Long Term IDR BB+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 ======= P E R U ======= DEL MONTE: Unit Replaces US$100M of Credit with New Term B Loan --------------------------------------------------------------- Del Monte Foods Company disclosed that Del Monte Corp., its wholly-owned subsidiary, replaced a portion of its then- outstanding revolving credit facility balance by exercising a portion of the accordion feature that permits additional Term Loans, as allowed for in its existing senior credit facility. Del Monte replaced US$100 million of the revolving balance with proceeds (net of fees and expenses) from the additional Term B loan. As a result, total debt outstanding was not affected by the net additional Term B loan. The terms and conditions of the new Term B loan (including pricing, maturity, pro rata amortization and collateral and security) are the same as the terms and conditions applicable to the existing Term B loan currently outstanding under the credit facility. Banc of America Securities LLC acted as sole lead arranger and sole book running manager in connection with the new Term B loan. Bank of America, N.A. is administrative agent for the Del Monte credit facility. About Del Monte Foods Headquartered in San Francisco, Calif., Del Monte Foods Company -- http://www.delmonte.com/-- produces and distributes processed vegetables, fruit and tomato products, and pet products. The products are sold under Del Monte, Contadina, S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix, Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone. The Group has food-processing plants in South America and has subsidiaries in Venezuela, Colombia, Ecuador and Peru. The production facilities are operated in California, the Midwest, Washington and Texas, as well as 7 distribution centers. * * * Moody's Investors Service confirmed on April 26, 2006, Del Monte Corp.'s Ba3 senior secured debt and corporate family ratings, as well as its B2 subordinated debt rating. Moody's also assigned Ba3 ratings to two senior secured term B loans being established by the company, as well as a Ba3 rating to a US$50 million step- up in its senior secured revolving credit facility. * * * Standard & Poor's Ratings Services assigned on April 26, 2006, its 'BB' bank loan ratings and '1' recovery ratings to Del Monte Corp.'s proposed US$975 million add-on to its existing senior secured term loan facilities, indicating the expectation of full (100%) recovery of principal in the event of a payment default. At the same time, Standard & Poor's affirmed its 'BB-' long-term and 'B-1' short-term corporate credit ratings. S&P said the ratings outlook is negative. * * * Fitch Ratings revised on March 21, 2006, the Ratings Outlook for Del Monte Food Company and Del Monte Corp. to Negative from Stable. The ratings have been affirmed as: Del Monte Foods Company (Parent): -- Issuer default rating 'BB' Del Monte Corp. (Operating Subsidiary): -- IDR 'BB' -- Senior secured bank facility 'BB+' -- Senior subordinated notes 'BB-' These ratings actions affect Del Monte's US$1.3 billion of debt outstanding as of Jan. 29, 2006. * PERU: Rail Concessionaire to Propose Linking Nation to Brazil --------------------------------------------------------------- Ferrocarril Central Andino or FCA, the rail concessionaire in Peru, will propose a railway that would link Brazil and Peru to the latter's transport and communications ministry, according to a report by local paper El Peruano. El Peruano relates that FCA would conduct the project with Brazil's America Latina Logistica aka ALL. Juan de Dios Olaechea, the head of FCA, told El Peruano that the plan would need a US$1.2 billion investment from FCA to build a 1,244km railway on the Peruvian side of the border. ALL would construct a 2,000km railway in Brazil. El Peruano reports that Mr. Olaechea said, "Talks with the [Brazilian] firm are quite advanced and we're just waiting to show this project to the government and obtain approval to begin its execution." The project interests ALL as it would reduce transport costs for Brazilian soy products exported to Asia, Prensa Latina states. * * * Fitch Ratings assigned these ratings on Peru: Rating Rating Date ------ ----------- Country Ceiling BB Nov. 18, 2004 Long Term IDR BB Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 ===================== P U E R T O R I C O ===================== DORAL FINANCIAL: Files Fin. Reports for Year Ended Dec. 31, 2005 ---------------------------------------------------------------- Doral Financial Corp. has filed with the US Securities and Exchanged Commission its Annual Report on Form 10-K for the year ended Dec. 31, 2005. "With the filing of our 2005 results, the company continues moving forward to return to timely financial reporting," stated John A. Ward III, the Company's Chairman and Chief Executive Officer. "Doral Financial expects to report its results for the first two quarters of 2006 prior to the annual meeting of stockholders, which has been set for October 24, 2006, and to thereafter resume a regular financial reporting schedule." For 2005, Doral Financial reported net income of US$13.2 million, or a net loss of US$0.19 per diluted share (after payment of dividends on preferred shares), and a net loss for the quarter ended Dec. 31, 2005, of US$44.2 million, or US$0.49 per diluted share. For 2004, the company had net income of US$214.8 million, or US$1.63 per diluted share, and net income of US$126.2 million, or US$1.02 per diluted share, for the quarter ended Dec. 31, 2004. Mr. Ward said, "While we are pleased with the progress we have made towards becoming current in our financial reporting, we do not believe our results for 2005 reflect Doral Financial's longer-term profit and growth potential. Doral's management has undertaken a number of critical initiatives to position the company for the long term. We have renegotiated and modified a significant portion of the mortgage loan transfers that were recharacterized as secured borrowings as part of the restatement process. We are also implementing significant cost savings initiatives and a comprehensive remediation program designed to improve Doral's internal controls." "Doral today is a very different company in terms of our culture and management. Consistent with our announcement in May, effective immediately after the filing of our 2005 10-K, Glen Wakeman will be appointed Doral Financial's Chief Executive Officer and I will return to my role as Non-executive Chairman. Glen will lead the process put in place to strategically adapt Doral's business model to produce revenues and earnings streams that are more stable and transparent, and to assure that Doral remains well positioned to capitalize on its strong mortgage franchise in the marketplace," Mr. Ward said. Doral Financial also disclosed that the Board of Directors had set the date of the annual meeting of stockholders for October 24, 2006. A formal notice of meeting will be sent to shareholders in connection with the meeting. Overview of Results of Operations Doral Financial's consolidated financial statements for 2005 reflect significantly lower earnings than those reported for 2004. Net income for the year ended Dec. 31, 2005, amounted to US$13.2 million, compared to US$214.8 million and US$142.1 million for 2004 and 2003, respectively. Doral Financial's 2005 financial performance was principally impacted by: (1) a change in tax position from a tax benefit in 2004 to tax expense in 2005, (2) reduced net interest income and gain on sale of mortgage loans due principally to the interest rate environment, (3) a higher provision for loan and lease losses, (4) increased expenses as a result of the company's restatement efforts, (5) a significant loss on sale of investment securities, and (6) a reserve for a potential settlement of the SEC's ongoing investigation of the company. The highlights of the Company's financial results for the year ended Dec. 31, 2005, includes: -- Net income for the year ended Dec. 31, 2005, was US$13.2 million, compared with US$214.8 million and US$142.1 million for the years ended Dec. 31, 2004 and 2003, respectively. After the payment of preferred stock dividends, there was a net loss attributable to common shareholders of US$20.1 million for the year ended Dec. 31, 2005, compared with net income attributable to common shareholders of US$181.5 million and US$121.1 million for the years ended Dec. 31, 2004 and 2003, respectively. -- Diluted loss per share for the year ended Dec. 31, 2005, was US$0.19, compared with diluted earnings per share of US$1.63 and US$1.10 for the years ended Dec. 31, 2004 and 2003, respectively. -- Net interest income for the year ended Dec. 31, 2005 was US$280.6 million, compared with US$337.6 million and US$237.5 million for the years ended Dec. 31, 2004 and 2003, respectively. The decrease in net interest income for 2005 reflects a significant decrease in net interest margin offset in part by a significant growth in average interest-earning assets, principally loans and mortgage-backed securities. The reduction in net interest margin resulted from the flattening of the yield curve. On average, the company's interest bearing liabilities, principally wholesale funding and loans payable, re-priced at higher rates than the company's interest earning assets. -- The provision for loan and lease losses for the year ended Dec. 31, 2005, was US$22.4 million, compared to US$10.4 million and US$11.6 million for 2004 and 2003, respectively. The increase in the allowance for loan and lease losses reflects principally an increase in the allowance for the company's construction loan portfolio, as well as an increase in the delinquency trends of the overall loans portfolio. -- Non-interest income for the year ended Dec. 31, 2005, was US$62.5 million, compared to US$16.2 million and US$118.8 million in 2004 and 2003, respectively. The increase in non-interest income, in 2005 compared to 2004, was primarily driven by lower losses on trading activities and higher servicing income, offset in part by lower gain on sales of mortgage loans and investment securities. During the fourth quarter of 2005, the company, as a measure designed to increase liquidity, as well as to strengthen its capital ratios, sold approximately US$1.2 billion of certain lower-yielding securities from its investment portfolio, at a loss of approximately US$45.3 million. Lower losses on trading activities during 2005 were principally due to unrealized gains with respect to derivative instruments undertaken for risk management purposes, which were in turn mainly attributable to an increase in long-term interest and swap rates during 2005. -- Non-interest expenses for the year ended Dec. 31, 2005, was US$288.5 million, compared to US$214.1 million and US$178.6 million for the years ended Dec. 31, 2004 and 2003 respectively, an increase of 35% and 20% respectively. The increase in non-interest expenses was driven by an increase of US$29.4 million in professional fees associated with the restatement of the company's prior period financial statements and a US$25 million reserve created for a potential settlement of the SEC's ongoing investigation of the company. -- Doral Financial has been engaged in discussions with the staff of the SEC regarding a possible resolution to its investigation of the company's restatement, and has reserved US$25 million in its consolidated financial statements for the year ended Dec. 31, 2005, in connection with a potential settlement of the SEC's investigation of the company. Any settlement is subject to acceptance and authorization by the Commission. There can be no assurance that the company's efforts to resolve the SEC's investigation with respect to the company will be successful, or that the amount reserved will be sufficient, and the company cannot predict the timing or the final terms of any settlement. Doral Financial has not reserved any amounts in its financial statements in respect of the pending civil lawsuits in connection with its restatement, which are in their early stages. -- For the year ended Dec. 31, 2005, Doral Financial reported income tax expense of US$19.1 million (representing an effective tax rate of 59.1%), as compared with a tax benefit of US$85.5 million for 2004. During 2005, the company's effective tax rate was adversely affected by an increase in income tax rates in Puerto Rico, net operating losses at certain subsidiaries that could not be used to offset taxable income at other subsidiaries, certain expenses that were not deductible for tax purposes and an increase in the valuation allowance on the company's deferred tax assets. During 2004, the company benefited from a significant inter-company sale of IOs completed for the purpose of taking advantage of a temporary reduction in capital gain tax rates, as well as from the recognition of a deferred tax asset in respect of taxes paid on transfers of IOs based on their value prior to the restatement. -- Doral Financial and its banking subsidiaries remain "well capitalized" for bank regulatory purposes as of Dec. 31, 2005. New Business Strategy In 2006, Doral Financial commenced the implementation of key changes to its business strategy that are principally intended to produce revenue and earnings streams that are more stable and transparent. Among the changes in the business strategy, management intends to retain a significant amount of its future internal loan originations in order to increase its net interest income, subject to liquidity needs and interest rate risk considerations. Doral Financial also intends to expand the loan products offered by its banking subsidiaries and will seek to leverage its customer relations with mortgage clients to cross sell a number of different consumer loan products and financial services. The company will continue to emphasize growth in fee income from its insurance agency activities, as well as from other banking and financial services, and is examining ways to improve the efficiency of its product delivery systems. It has also commenced a major reengineering project with the assistance of Proudfoot Consulting designed to substantially reduce non- interest expenses and to make its operations more efficient. Combined with already implemented headcount reductions, the Company anticipates that beginning in 2007 this project will result in annualized cost savings of at least US$50 million. Recent Loan Production Data and Future Operations The restatement process has resulted in a number of financial, operational and legal difficulties that have had and continue to have a material adverse effect on Doral Financial. These difficulties include, among others: -- reduced mortgage originations, related in part to a reduction in the company's market share in the Puerto Rico mortgage market; -- reduction in mortgage loan sales and related gain on sales; and -- legal, accounting and other expenses related to the restatement process. While Doral Financial has implemented a number of important initiatives to improve its long-term earnings potential and liquidity, the operational and legal difficulties related to the restatement are expected to continue to adversely impact the company's earnings and financial condition during 2006. Restatement related expenses continue to run on average at approximately US$3.5 million per month during the first half of 2006 and the positive impact of cost-cutting initiatives and new business strategies will not have a substantial impact during 2006. Doral Financial's loan production for the first six months of 2006 was US$1.4 billion, compared with US$2.8 billion for the comparable period in 2005, a decrease of approximately 50%. The decrease in Doral Financial's loan production is due to the adoption of more stringent underwriting and pricing criteria designed to meet the requirements of institutional investors in the secondary mortgage market and to competition from other Puerto Rico financial institutions in the mortgage market, as well as to adverse economic conditions in Puerto Rico. Internal Control Over Financial Reporting The company's management, with participation of its Chief Executive Officer and Chief Financial Officer, evaluated and concluded that the Company's disclosure controls and procedures and internal control over financial reporting were not effective as of Dec. 31, 2005. The material weaknesses in the company's internal control over financial reporting as of Dec. 31, 2005, are described in Item 9A of the company's 2005 10-K report. Doral Financial is actively engaged in the implementation of remediation efforts to improve its internal control over financial reporting and disclosure controls and procedures. The company has and continues to develop a plan for remedying all of the identified material weaknesses, and the work will continue through and may extend beyond 2006. As part of this remediation program, the company is taking steps to add skilled resources to improve controls and increase the reliability of the financial closing process. A discussion of Doral Financial's remediation efforts is also contained in Item 9A of the company's 2005 10-K report. About Doral Financial Doral Financial Corporation -- http://www.doralfinancial.com/ -- a financial holding company, is the largest residential mortgage lender in Puerto Rico, and the parent company of Doral Bank, a Puerto Rico based commercial bank, Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal savings bank based in New York City. * * * As reported in the Troubled Company Reporter on June 13, 2006, Standard & Poor's Ratings Services lowered its long-term ratings on Doral Financial Corp. (NYSE: DRL), including the company's long-term counterparty rating, to 'B+' from 'BB-'. At the same time, Doral's outlook remains on CreditWatch with negative implications. ================================= T R I N I D A D & T O B A G O ================================= BRITISH WEST: Implements New Flight Regulation ---------------------------------------------- British West Indies Airlines aka BWIA has implemented a new regulation for passengers bound for the United States as well as for other locations, the Trinidad & Tobago Express reports. BWIA said in a press release on Tuesday, "The United States Department of Homeland Security and Transportation Security Administration has advised that effective immediately, passengers traveling to and from the United States may not have liquids, gels, or aerosols in accessible property or on their person past the boarding gate hold area or the boarding gate." According to The Express, other prohibited items that may be transported in checked baggage are: -- beverages, -- shampoo, -- suntan lotion, -- creams, -- toothpaste, -- hair gel, -- hair spray, -- liquid cosmetics, and other items of similar consistency. The Express relates that permitted items that may be carried in hand baggage are: -- baby formula/milk and baby food in small containers if a baby or small child is traveling, -- prescription medicine with a name that matches the passenger's ticket, -- essential other non-prescription medicines not to exceed four ounces per container, and -- liquids or gels for diabetic passengers who indicate a need for the items to address their medical condition. The Express notes that the items must not exceed eight ounces per container. Meanwhile, "duty-free items" -- liquids, gels, and aerosols -- could be transported in the cabin of the aircraft if they are delivered to the passenger immediately before boarding or after they have boarded the plane, The Express states. About British West Indies Airlines British West Indies Airlines was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline has reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management is a major issue in the company. A number of key employees moved to other companies caused by a deadlock in the company's negotiation with its labor union. ============= U R U G U A Y ============= * URUGUAY: Political Coalition Rejects Free Trade Pact with US -------------------------------------------------------------- Uruguay's Frente Amplio rejected the free trade project sponsored by the United States, Prensa Latina reports. Frente Amplio is a Uruguayan coalition of political parties and organizations led by Uruguay's President Tabare Vazquez. Frente Amplio has close ties with Plenario Intersindical de Trabajadores-Convencion Nacional -- a federation of labor unions -- and the cooperative housing movement. While not in power, Frente Amplio has used the Uruguayan referendum system to repeal laws that sought to privatize state-run industries or instate other neoliberal economic reforms. Prensa Latina relates that Frente Amplio's political board's decision ratified a resolution that its plenary body has approved. The resolution rejects the US-sponsored free trade agreement project as well as the eventual bilateral agreements after its ratification. According to the report, Frente Amplio has called the Uruguayan government to reach trade accords with other nations, as the group favors the nation's inclusion in the world trade without affecting sovereignty and regional agreements. President Vazquez had announced that he would be the only spokesperson on the free trade agreement with the US, after Foreign Minister Reinaldo Gargano rejected a possible free trade pact between Montevideo and Washington, saying that it would affect the local economy and relations with Mercosur, Prensa Latina relates. * * * Fitch Ratings assigned these ratings on Uruguay: Rating Rating Date ------ ----------- Country Ceiling BB- Mar. 7, 2005 Long Term IDR B+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB- Mar. 7, 2005 ================= V E N E Z U E L A ================= CITGO PETROLEUM: Sells Texas Refinery to Lyondell for US$1.3B ------------------------------------------------------------- Rafael Ramirez, Venezuela's energy and petroleum minister, said in published reports, that Petroleos de Venezuela has agreed to sell Citgo Petroleum Corp.'s 41.25% stake in Lyondell-Citgo Refining L.P. -- a plant based in Houston, Texas -- to co-owner Lyondell Chemical Co. for US$1.3 billion. After two years of study and negotiation, the sale of the stake was approved, Minister Ramirez, who is also the president of Petroleos de Venezuela, said. The negotiation for the Lyondell-Citgo plant has been concluded, Minister Ramirez told the press at the headquarters of Petroleos de Venezuela. "It's being sold to Lyondell," he said. The sale was expected to be US$2.17 billion, but due to debt and taxes, Petroleos de Venezuela would net about US$1.31 billion. Proceeds from the sale would be deposited in Fondem -- a fund that uses Petroleos de Venezuela's money to support development projects in Venezuela. Minister Ramirez said that the sale could be finalized in a few days. Petroleos de Venezuela decided to sell the Lyondell-Citgo stake to cancel a 25-year contract. Under this contract, the company supplied crude at a discount of US$2 per barrel. The contract was at its eighth year. Minister Ramirez said, "The contract has been replaced with a new five-year one." Venezuela would continue to supply crude to the Lyondell-Citgo plant under the new terms of the five-year supply contract. The nation would receive: -- US$1.3 billion in earnings on the deal, after discounting debt payments, and -- US$1 billion in taxes. Patrick Esteruelas, an Eurasia Group analyst, told the Associated Press that the sale of Citgo's stake in the Lyondell- Citgo refinery is part of a plan to drop off some US refinery assets to invest more in oil exploration and production in Venezuela. "Venezuela can afford to divest some of its refining assets. The overall operations of the (Lyondell) refinery certainly haven't changed in any significant or material way," Mr. Esteruelas was quoted by AP as saying. However, Lyondell said that there was yet no final agreement regarding the sale. The company did confirm that there had been talks. "The partners have been discussing the possibility of Lyondell acquiring Citgo's interest (in the refinery) and no agreement has been reached. I have no further comment at this time," David Harpole, the spokesperson of Lyondell, told AP. Headquartered in Houston, Texas, CITGO Petroleum Corporation -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. PDVSA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported in the Troubled Company Reporter on Feb. 16, 2006, Standard and Poor's Ratings Services assigned a 'BB' rating on CITGO Petroleum Corp. * VENEZUELA: Bolivian Exports Down 3% to US$90M for First Half -------------------------------------------------------------- For the first six months of 2006, Bolivia's exports to Venezuela dropped to US$90 million from US$92 million last year, El Universal reports, citing a report from the Bolivian Trade Institute. Trade Institute manager Gary Rodriguez told Efe that that figure raise serious questions "about the efficiency of the Peoples' Trade Accord, through which the (Bolivian) Government hoped to encourage trade." Bolivia hosted in May a fair to encourage trade from both the Peoples' Trade Accord and the Bolivarian Alternative for the Americas -- both accords are aimed to counter the US-sponsored Free Trade Agreements. Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * VENEZUELA: Oil Output Declines 120,000 Barrels Per Day in July ---------------------------------------------------------------- El Universal, citing the International Energy Agency, reports that Venezuela's oil production in July decreased by 120,000 barrels per day, which is primarily atrributed to: -- reduced operations at the Orinoco Oil Belt for maintenance purposes; and -- declining domestic crude oil output since 2004. IEA, an organization of oil consuming countries, said in its monthly report that Venezuelan output in July was 2.47 million bpd, compared with May's 2.6 million bpd and June's 2.59 million bpd. "Venezuelan output in June soared 80,000 bpd because of the apparent adjournment for July-August of the shutdown of Hamaca oil enhancer for maintenance purposes. Based on this new figure and an unexpected disruption that hit Sincor in June, we estimate that production in July fell 120,000 bpd to 2.47 million bpd," El Universal says, citing the report. Meanwhile, the country's contribution to the overall output of the Petroleum Exporting Countries dropped to 29.76 million bpd from 30.01 million in June. Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * VENEZUELA: Pres. Chavez to Reinforce Bilateral Ties with China ---------------------------------------------------------------- Venezuelan President Hugo Chavez will visit China next week to discuss bilateral links and energy trade, El Universal reports, citing the Chinese state news agency Xinhua. The visit will be made following Chinese President Hu Jintao's invitation. The president's visit will be from August 22 to 27. However, the Chinese government declined to give EFE news agency the Venezuelan's agenda and the names of officials President Chavez is to meet there. In 2005, bilateral trade between Venezuela and China reached US$2.14 billion. Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- August 25, 2006 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ August 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ September 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION 4th Annual Alberta Golf Tournament Kananaskis Country Golf Course, Kananaskis, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ September 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Business Mixer TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ September 7-8, 2006 EUROMONEY Leveraged Finance Hotel Rey Juan Carlos I, Barcelona, Spain Contact: http://www.euromoneyplc.com/ September 7-8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Saratoga Regional Conference Gideon Putnam Hotel, Saratoga Springs, New York Contact: http://www.turnaround.org/ September 7-9, 2006 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Wynn Las Vegas, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ September 8-9, 2006 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium London, England Contact: http://www.turnaround.org/ September 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ September 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBA, Secaucus, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ September 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI Turnaround Formal Event Long Island, New York Contact: http://www.turnaround.org/ September 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Function Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ September 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Formal Event - Major Speaker to be Announced Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ September 13-15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Texas Regional Conference Hyatt Regency Resort & Spa Lost Pines, TX Contact: 870-760-7116 or http://www.turnaround.org/ September 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Kick-Off Reception Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ September 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION BOK Review - Management Gardner Carton & Douglas, Chicago, IL Contact: 815-469-2935 or http://www.turnaround.org/ September 17-24, 2006 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES Optional Alaska Cruise Seattle, Washington Contact: 800-929-3598 or http://www.nabt.com/ September 19-20, 2006 STRATEGIC RESEARCH INSTITUTE 2nd Annual Euro Distressed Debt Summit Le Meridien Parkhotel, Frankfurt, Germany Contact: http://www.srinstitute.com/ September 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Bankers Club, Miami, Florida Contact: 561-882-1331 or http://www.turnaround.org/ September 21, 2006 TURNAROUND MANAGEMENT ASSOCIATION Restructuring Workshop With US Bankruptcy Judges Hale, Nelms and Lynn Belo Mansion - The Pavilion, Dallas, TX Contact: http://www.turnaround.org/ September 24, 2006 TURNAROUND MANAGEMENT ASSOCIATION Restructuring the Troubled High Tech Company Arizona Contact: http://www.turnaround.org/ September 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ September 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Education Program with NYIC Joint Reception CFA/RMA/IWIRC Woodbridge Hilton, Iselin, NJ Contact: http://www.turnaround.org/ September 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION 7th Annual Cross Border Business Restructuring and Turnaround Conference Banff, Alberta Contact: http://www.turnaround.org/ October 5, 2006 TURNAROUND MANAGEMENT ASSOCIATION Commercial Lenders Breakfast Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ October 10, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Center Club, Baltimore, Maryland Contact: 703-912-3309 or http://www.turnaround.org/ October 11, 2006 TURNAROUND MANAGEMENT ASSOCIATION Professional Development Meeting Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ October 11-14, 2006 TURNAROUND MANAGEMENT ASSOCIATION 2006 Annual Conference Milleridge Cottage, Long Island, New York Contact: 312-578-6900; http://www.turnaround.org/ October 12, 2006 TURNAROUND MANAGEMENT ASSOCIATION UTS Fundamentals of Turnaround Management Mecure Hotel - Haymarket, Sydney, Australia Contact: http://www.turnaround.org/ October 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Updates on the New Bankruptcy Law Kansas City, Missouri Contact: http://www.turnaround.org/ October 19, 2006 TURNAROUND MANAGEMENT ASSOCIATION Billards Networking Night - Young Professionals TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds - Expanded Financing Opportunities in Business Turnarounds Arizona Contact: http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 26, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series #3 TBA, Calgary, Alberta Contact: 403-294-4954 or http://www.turnaround.org/ October 27, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Coach Dan Reeves Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ October 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION BK/TMA Golf Tournament Orange Tree Golf Resort, AZ Contact: 623-581-3597 or http://www.turnaround.org/ October 30-31, 2006 Distressed Debt Summit: Preparing for the Next Default Cycle Financial Research Associates LLC Helmsley Hotel, New York, NY Contact: http://www.frallc.com/ October 31, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ October 31 - November 1, 2006 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Conference San Francisco, California Contact: http://www.iwirc.com/ November 1, 2006 TURNAROUND MANAGEMENT ASSOCIATION Halloween Isn't Over! - Ghosts of turnarounds past who remind you about what you should have done differently Portland, Oregon Contact: http://www.turnaround.org/ November 1-4, 2006 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges San Francisco, California Contact: http://www.ncbj.org/ November 2-3, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Marriott, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia National Conference Sydney, Australia Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program St. Louis, Missouri Contact: 815-469-2935 or http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Reception with NYIC/NYTMA TBA, New York Contact: 908-575-7333 or http://www.turnaround.org/ November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Duquesne Club, Pittsburgh, Pennsylvania Contact: http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ November 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Martini Party Vancouver, British Columbia Contact: 403-294-4954 or http://www.turnaround.org/ November 27-28, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Thirteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Essex House Hotel - New York Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Special Program TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Industry Trends Jasna Polana, Princeton, NJ Contact: http://www.turnaround.org/ November 30-December 2, 2006 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Hyatt Regency at Gainey Ranch, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Dinner Portland, Oregon Contact: 503-223-6222 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629- 3300. * * * End of Transmission * * *